The Target Cash Balance Is Reached When

question 38

Multiple Choice

The target cash balance is reached when:

• A)the interest on any marketable security throw-off is maximized.
• B)the interest foregone from not investing in an equivalent amount of Treasury bills is
• Minimized.
• C)the value of cash liquidity equals interest foregone on an equivalent amount of Treasury
• Bills.
• D)the liquidity value is greater than interest foregone on an equivalent amount of Treasury
• Bills.
• E)None of the above.

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Definitions:

Available Capacity

The maximum amount of work that an organization is capable of completing in a given period without exceeding its resources.

Demand Matching

The process of aligning supply with customer demand through inventory management and production planning.

Supply Chain Profits

The total earnings generated from all activities and stages involved in the production and distribution of a company's products, from raw materials to final delivery.

Planning

The process of making strategic decisions and setting goals and objectives to achieve desired outcomes in the future.