Which of the following statements is true about CASH?

The statement that the amount invested in cash depends on the size of the cash flow requirement is accurate. This reflects a fundamental principle of cash management and investment strategy. When an individual or organization has a larger cash flow requirement—such as needing funds for operational expenses, upcoming investments, or emergencies—the allocation to cash increases to ensure that sufficient liquidity is available to meet those needs.

In financial planning, maintaining an appropriate level of investment in cash is crucial, especially for covering short-term obligations or unexpected expenses. The size of these cash flow requirements directly influences how much is kept in cash, as it must be available and easily accessible when needed. Hence, the management of cash investments aligns with one's financial strategy and responsibilities.

The other options do not accurately reflect the relationship between cash management and market conditions or interest rates as effectively as this statement does.