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Baumol model

• A model that provides for cost-efficient transactional cash balances; assumes that the demand for cash can be predicted with certainty and determines the economic conversion quantity (ECQ).

 
 

Follow this link for all the terms related to model.

 
 Embedded terms in definition
 Cash
Conversion
Demand
Economic conversion quantity
 
 Related Terms
 

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Teaching Children the Financial Facts of Life: Showing the importance of saving, spending wisely and sharing with others More...

Do not let yourselves be discouraged or embittered by the smallness of the success you are likely to achieve in trying to make life better. You certainly would not be able, in a single generation, to create an earthly paradise. Who could expect that? But, if you make life ever so little better, you will have done splendidly, and your lives will have been worthwhile. - Arnold Toynbee

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