| Author: | Gijlswijk, V. van |
| Title: | Evaluating the interest aspect of cash management. |
| Journal: | European Journal of Operational Research
1987 : JUN, VOL. 30:1, p. 85-88 |
| Index terms: | BANKING CASH MANAGEMENT CORPORATE LIQUIDITY |
| Language: | eng |
| Abstract: | An important aspect of cash management is how to deal with temporary liquidity positions. Clearly a treasurer wants to maximize interest gain in case of a liquidity surplus and to minimize interest cost whenever there is a shortage of liquidity. This is done by means of transactions in the money market, deposits and loans. A model is presented that yield a strategy which optimizes the interest cost for a certain period in past, taking into account the dynamic character of interest expectations. |
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