Which of the Following Statements Is Correct

Which of the following statements is correct?

A) In the Miller-Orr model the greater the interest rate, the greater the target cash balance.
B) In the BAT model the greater the order cost, the higher the target cash balance.
C) If a firm chooses to borrow, rather than invest in marketable securities, it will find that borrowing is likely to be less expensive than selling marketable securities.
D) A firm is less likely to have to borrow to cover an unexpected cash outflow the greater its cash flow variability.
E) A firm is less likely to have to borrow to cover an unexpected cash outflow the lower its investment in marketable securities.