Which of the Following Approach for Determining the Target Cash

question 80

Multiple Choice

Which of the following approach for determining the target cash balance assumes that the distribution of daily net cash flows is normally distributed, and allows for both cash inflows and outflows?

• A) The Baumol Model
• B) The Miller-Orr Model
• C) The Merton Model
• D) The Interbank Financial Model

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American Psychological Association

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