Topic: Cash Requirements and Bank Overdraft

Subject Area:  Finance

Number of Pages: 4

Writing Style: MLA

Type of Document: Essay

Academic Level: Master

Number of sources/references: 6

Details: Explain the reasons why a company might hold liquid cash or short term investments.
Answer:
1. Transaction Motive: in order that a company can conduct its business
2. Precautionary Motive: in case of unanticipated fluctuations
3. Speculative Motive: in anticipation of future investment decisions
Explain and discuss the 3 points above critically, and add what other people wrote regarding this topic in academic journals (mention other reasons academics might have).
How I want the structure of the essay:
Introduction: Introduce the question (why a company might hold liquid cash or short term investments?)
Body: Critical discussion of the 3 points and what other academics think.
Conclusion: Any reasons to let people hold too much on cash? and END the whole discussion.
Thank you.