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  5. Transactional Motive for Holding Cash

Transactional Motive for Holding Cash

Definition of 'Transactional Motive for Holding Cash'

Money is used as a means of exchange; reciepts and payments are rarely perfectly synchronised and therefore an individual or business generally needs to hold a stock of money to meet expenditure.

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Related Terms

Transactions Motive for Holding MoneyPrecautionary Motive for Holding CashHolding Period ReturnsJust in TimeOpportunity Cost of Holding MoneyVendor PlacingTransactional BankingTransactional ExposureBenefit DistributionReserve CurrencyCash SettlementConventional Cash FlowsEarnings before Interest, Tax, Depreciation & AmortisationFree Cash FlowModified Internal Rate of ReturnMoney Cash FlowPooled IRRActive HoldingAveragingCarry

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