The Target Cash Balance Is Reached When

question 9

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.

---

Definitions:

Recommendations

Advice or suggestions given based on expertise or experience, often in a professional context.

Inductive Reasoning

A reasoning method where several assumptions, considered accurate or usually accurate, are merged to reach a particular inference.

Deductive Reasoning

A logical process where a conclusion is based on the concordance of multiple premises that are generally assumed to be true.

Research Report

A document presenting the findings of a research project, including methodology, data analysis, and conclusions.