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    Exam 16: Managing Short-Term Liabilities Financing
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    A Firm's Target Cash Balance Should Be Set as the Smaller
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A Firm's Target Cash Balance Should Be Set as the Smaller

Question 97

Question 97

True/False

A firm's target cash balance should be set as the smaller of (1) its transaction balance plus a precautionary (safety stock) balance or (2) its required compensating balance.

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