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    Question

    The Miller-Orr Model is used to

    manage:
    A Inventory Levels Correct Answer Incorrect Answer
    B Cash Balances Correct Answer Incorrect Answer
    C Debt Portfolio Correct Answer Incorrect Answer
    D Equity Portfolio Correct Answer Incorrect Answer
    E Credit Policy Correct Answer Incorrect Answer

    Solution

    The Miller-Orr Model is a cash management model that determines the optimal cash balance for a company by setting upper and lower control limits. It helps in deciding when to buy or sell marketable securities to manage cash efficiently.

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