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BY : ANJANA RAI
ROLL NO :260137
DEFINITION
CASH : Cash is the ready currency to which
all liquid assets can be reduced.
NEAR CASH : Implies marketable securities
viewed the same way as cash because of
their high liquidity.
TRANSACTION MOTIVE : Is a motive for
holding cash / near cash to meet routine
cash requirements to finance transaction in
the normal cause of business.
PRECAUTIONARY MOTIVE : It is a motive for
holding cash / near cash as a cushion to
SPECULATIVE MOTIVE : Is a motive for
holding cash / near cash to quickly take
advantage of opportunities typically
outside the normal course of business.
COMPENSATION MOTIVE : Is a motive for
holding cash / near cash to compensate
banks for providing certain services or
loans.
OBJECTIVES OF CASH MANAGEMENT