Which of the following is not a good reason for holding cash rather than marketable securities?

Which of the following is not a good reason for holding cash rather than marketable securities? Cash is held:
a.     to meet daily business transaction needs.
b.     to provide the CEO with a travel slush fund.
c.     when yields on marketable securities are so low that brokerage costs would nearly eat up the entire yield.
d.     to make the balance sheet look good.

 

Solution