The more efficient the management of cash, the larger the amount of cash the firm needs to hold.

Name: The more efficient the management of cash, the larger the amount of cash the firm needs to hold.
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Quizplus · Accepted Answer

The more efficient the management of cash, the smaller the amount of cash the firm needs to hold. This is because efficient management can reduce the need for excess cash reserves and optimize the timing of cash inflows and outflows.

The More Efficient the Management of Cash, the Larger the Amount