Which of the Following Is Correct About the Various Cash

question 324

Multiple Choice

Which of the following is correct about the various cash management models?

• A) BAT assumes unsteady, uncertain cash outflows.
• B) BAT is generally considered one of the most complex cash management models in practice.
• C) The Miller-Orr model assumes the transaction cost of trading securities varies on a daily basis.
• D) The Miller-Orr model assumes cash flows fluctuate randomly from day to day.
• E) In the Miller-Orr model, cash flows can fluctuate up but not down.

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