4) demand for money for maintenance of the credit rating
)
(t
D
R
.
Since the same amount can satisfy simultaneously several targets, the company’s
effective demand for money is:
)
(
)}
(
),
(
max{
)
(
t
D
t
D
t
D
t
D
R
C
E
+
=
,
where the first element determined as a maximum value of two variables – is
compensation balance and the sum for maintenance of the credit rating, sets the
minimum level of money that the firm requires; the second element D
Δ
(t) is a varying
part of effective demand that depends on transaction and precautionary demands (fig.
1).
Figure 1. The structure of effective demand of a firm for money
The level of the first component of effective demand - max {D
C
(t), D
R
(t)} is
determined by the choice of bank, its credit policy, general state of credit market and
others.
The level of varying component of effective demand of D
Δ
(t) is determined by
parameters of transaction and precautionary demand.
Thus, we can divide a set of parameters determined the effective demand of the
company for money in three groups:
1) vector of parameters of financial policy of a firm:
))
(
),...,
(
),
(
(
)
(
2
1
t
t
t
t
l
=
;
2) vector of parameters of its economic development
))
(
),...,
(
),
(
(
)
(
2
1
t
z
t
z
t
z
t
z
k
=
;
3) vector of parameters of external environment
))
(
),...,
(
),
(
(
)
(
2
1
t
l
t
l
t
l
t
l
J
=
.
Thus, the company’s financial policy depends on its economic strategy and state
of external environment, so the vector’s components of the financial policy are
functions of vectors
)
(t
z
and
)
(t
l
:
))
(
),
(
,
(
)
(
t
l
t
z
t
t
=
.
The effective demand function of a firm for money is:
t
Max{D
C
(t)
,
D
R
(t)}
D
E
(t)
D
Δ
(t)
D
E
(t)
- 233 -