The Target Cash Balance for a Firm That Follows a Flexible

question 158

Multiple Choice

The target cash balance for a firm that follows a flexible cash management policy is the point at which ____________.

• A) Opportunity costs are minimized.
• B) Opportunity costs are equal to trading costs.
• C) Total costs just exceed the minimum cash balance.
• D) Total costs are just below their maximum.
• E) Transactions costs are maximized.

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