A firm with unpredictable cash flows is trying to set upper and lower limits for cash balances. Which of the following factors will result in upper and lower limits being closer to each other?
A) cost of trading securities is high
B) interest rate is low
C) current cash balance is low
D) variance of the cash flows is low
Answer: D) variance of the cash flows is low
Business
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Some negotiation relationships are purely business-related; others are entirely personal. Some
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