The Target Cash Balance Is Reached When

question 52

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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