The opportunity cost of holding cash is needed to determine the optimal strategy using the BAT model.

Name: The opportunity cost of holding cash is needed to determine the optimal strategy using the BAT model.
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Question

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The opportunity cost of holding cash is a key factor in the Baumol-Tobin (BAT) model, as it helps in determining the optimal balance between the cost of holding cash and the cost of converting securities into cash.

The Opportunity Cost of Holding Cash Is Needed to Determine