Which of the Following Is Not a Reason for a Firm

Multiple Choice

Which of the following is not a reason for a firm to hold cash balances?

A) To cover routine payments and collections.
B) To earn high rates of interest.
C) To meet compensating balance requirements of banks.
D) To provide a safety stock in the event of unforeseen fluctuations into cash flows.
E) To take advantage of bargain purchases that might arise.