FMF9

Syllabus C2f. Managing Cash 6 / 7

f) Explain the various reasons for holding cash, and discuss and apply the use of relevant techniques in
managing cash, including:
i) preparing cash flow forecasts to determine future cash flows and cash balances
ii) assessing the benefits of centralised treasury management and cash control
iii) cash management models, such as the Baumol model and the Miller-Orr model
iv) investing short-term
Managing Cash