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How is privilege most commonly maintained?
Target Cash Balance
A firm’s desired cash level as determined by the trade-off between carrying costs and shortage costs.
Cost of Borrowing
The total amount of money that a borrower pays to secure a loan, including interest, fees, and any other charges.
Miller-Orr Model
A financial model that helps in managing cash flows and cash reserves of firms, focusing on maintaining an optimal balance level.
Interest Rate
The percentage charged on a loan or paid on deposits over a specific period, reflecting the cost of borrowing or the gain on savings.
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