Name the type of budget which is prepared to determine the net cash position.

Cash budget

The correct answer is option 3 i.e. cash budget.

It is a basic tool in the management of cash. It is a device to help the management to plan and control the use of cash. It is a statement showing the estimated cash inflows and cash outflows over a given period. The net cash position is determined by the cash budget i.e., inflows minus (–) outflows = surplus or deficiency.