Explain Baumol’s model of cash management.

Baumol's model of cash management is a popular framework that helps firms determine the optimal amount of cash to hold for transactional purposes. This model was developed by economist William Baumol in 1952 and is based on the assumption that firms need to maintain a minimum level of cash in order to conduct their day-to-day business operations.

The model assumes that a firm's cash holdings can be divided into two types: transactional cash and idle _________ ____ _________ ____ _____ ________ ________ __________.
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