It Is Important for Any Firm to Determine Its Appropriate

It is important for any firm to determine its appropriate target cash balance:

A) In order to maximize its purchases of marketable securities.
B) Because there is a trade-off between the benefit and cost of liquidity.
C) Since most firms follow flexible policies of working capital management.
D) Because of the float the firm gains when it writes cheques.
E) Because of the fluctuation in interest rates on marketable securities.