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The article attempts to empirically determine whether the inference of the Baumol-Tobin analysis or the presumption of traditional monetary theory provides a better description of cash-management behavior. The Baumol-Tobin analysis, developed by William J. Baumol and James Tobin, is reviewed. The author utilizes a cross-section analysis of nonfinancial firms to relate cash balances of different sized firms to the volume of their sales. The relationships between demand for cash components and their determinants are stated in the form of equations. The author develops alternative approaches to cross-section examinations of the demand for cash.