Question: A firm should set the upper and lower limits on its cash balances close together if: Multiple Choice the day-to-day variability of cash flows is

A firm should set the upper and lower limits on its cash balances close together if:

Multiple Choice

the day-to-day variability of cash flows is large.

the rate of interest is high. the cost of buying and selling securities is high.

the uncertainty of cash flows is high.

All of the answers are correct.

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