The primary reason a firm holds marketable securities is because they:
A. substitute for its long-term debt.
B. offer a place to temporarily invest cash balances to earn high rates of return.
C. are useful for managing credit sales.
D. can be used to help speed up collections of its accounts payable.
E. permit the firm to earn positive returns on cash that is not needed to pay bills in the current period.
Answer: E
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= 
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