a. Better synchronization of cash inflows and outflows would allow the firm to keep its transactions balance at a minimum, and would therefore lower the target cash balance.

b. Improved sales forecasts would tend to lower the target cash balance.

c. A reduction in the portfolio of U.S. Treasury bills (marketable securities) would cause the firm's cash balance to rise if the Treasury bills had been held in lieu of cash balances.

d. An overdraft system will enable the firm to hold less cash.

e. If the amount borrowed equals the increase in check-writing, the target cash balance will not change. Otherwise, the target cash balance may rise or fall, depending on the relationship between the amount borrowed and the number of checks written.

f. The firm will tend to hold more Treasury bills, and the target cash balance will tend to decline.