- CFA Exams
- CFA Level I Exam
- Study Session 11. Corporate Finance (2)
- Reading 35. Working Capital Management
- Subject 2. Managing the Cash Position
CFA Practice Question
It is important for any firm to determine its appropriate target cash balance ______
A. because there is a trade-off between the benefit and cost of liquidity.
B. because of the fluctuation in interest rates on marketable securities.
C. since most firms follow flexible policies of working capital management.
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