The Target Cash Balance Is Defined as the Cash Level

The target cash balance is defined as the cash level that:

A) Equals the average transaction needs of the firm.
B) Equals the average transaction, precaution, and compensating balance needs of a firm.
C) Maximizes the disbursement float and minimizes the collection float.
D) Eliminates any float caused by availability delays.
E) Equalizes the opportunity costs and the trading costs of holding cash.