The figure given below shows the interest rate on the vertical axis and the quantity of money on the horizontal axis.In this figure,an increase in the interest rate will cause a movement from:
Definitions:
Average Daily Receipts
The average amount of money received by a company per day over a given period, often used to measure cash flow or performance.
Customers
Individuals or entities that purchase goods or services from a business, essentially driving the revenue of the company.
Miller-Orr Model
A financial model used to manage cash balances, determining the optimal point to transfer funds in and out of a non-interest bearing cash account.
Cash Balance Target
A strategy where a company aims to maintain a specific amount of cash on hand to meet operational and emergency needs.
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