Question

In the Metropolis forecast example, we are using cash as a plug number. To keep the example simple, we assume that the cash is not sitting in an interest-bearing bank account. Imagine the cash were in an interest-bearing account, meaning the company would earn interest revenue based on the cash balance. How would this affect your forecast and forecasting process?

Answer 1

Answer:

hi friends who are you?

all of you are fine

Answer 2

Explanation:

Considering the cash is in interest bearing account, companies would tend to hold the cash in the accounts rather than bringing it into more of a circulation. Now the more the cash balance, the more affect it will have on the forecasting process since it will keep on changing with time. However this forecasting can be better speculated since the cash is reserved there rather than the uncertainties that can come when the cash is under circulation