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The Target Cash Balance Can Be Defined as the Point

Question 305

Multiple Choice

The target cash balance can be defined as the point where the:


A) Opportunity costs of holding cash are equal to zero.
B) Opportunity costs of holding cash are maximized.
C) Opportunity costs of holding cash are equal to the trading costs.
D) Trading costs are equal to zero.
E) Trading costs are maximized.

Correct Answer:

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