One advantage of the BAT model is that it assumes that a firm has a constant cash outflow every day.

Name: One advantage of the BAT model is that it assumes that a firm has a constant cash outflow every day.
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Quizplus · Accepted Answer

The BAT model (Baumol-Tobin model) does not assume a constant cash outflow every day; instead, it helps determine the optimal cash balance by balancing the cost of holding cash against the transaction costs of converting securities to cash.

One Advantage of the BAT Model Is That It Assumes