How could the cash budget be used when negotiating the terms of a bank loan? How would a shift from a tight credit policy to a relaxed policy be likely to affect a firm's cash budget? Suppose a firm's cash flows do not occur uniformly throughout the month. What effect would this have on the accuracy of the forecasted borrowing requirements based on a monthly cash budget? How could the firm deal with this problem? Why is cash management important? What are the primary motives for holding cash