Next question Management of cash balance Personal finance Problem Alexis Morris, an assistant manager at a local department store, veeks by direct deposit into her checking account. This account pays no interest and has no minimum balance requirement. Her monthly income is $4,400. Alexis has a "target" cash balance of around $1,230, and whenever it exceeds that amount she transfers the excess into her savings account, which currently pays 2.1% annual interest. Her current savings balance is $15,300, and Alexis estimates she transfers about $410 per month from her checking account into her savings account. Alexis doesn't waste any time in paying her bills, and her monthly bills average about $1,860. Her monthly cash outlay for food, gas, and other sundry items totals about $900. Reviewing her payment habits indicates that on average she pays her bills 11 days early. At this time, most marketable securities are yielding about 4.74% annual interest. Show how Alexis can better manage her cash balance: a. What can Alexis do regarding the handling of her current balances? b. What do you suggest that she do with her monthly surpluses? c. What do you suggest Alexis do about the manner in which she pays her bills? d. Can Alexis grow her investment income by better managing her cash balances? a. What can Alexis do regarding the handling of her current balances? (Select the best answer below.) O A. Alexis should increase her "target" cash balance to around $1,599. B. Alexis should lower her "target" cash balance to around $861. O C. Alexis should transfer her current savings account balances into the liquid marketable security. D. Alexis should look for a checking account that pays at least 2.1%