Precautionary Cash Balances

Precautionary cash balances

A) are necessary in case the firm has underestimated the amount of cash needed to cover transactions.
B) are necessary to cover scheduled outflows of funds during a cash budgeting period.
C) are necessary in case the firm has underestimated the amount of cash needed to cover transactions,and are also necessary to cover scheduled outflows of funds during a cash budgeting period.
D) none of the options

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