Asked by Anthony Espino on Apr 29, 2024
Verified
The cash manager's goal is to minimize the firm's cash balances.
Cash Balances
Cash balances refer to the amount of currency, coins, and balances in checking and savings accounts that a company holds at any given time.
- Recognize the paramount importance and methodology of managing cash flows, including the pros and cons linked with distinct strategies for managing cash.
Verified Answer
FM
Fouad MoabiMay 04, 2024
Final Answer :
False
Explanation :
The cash manager's goal is actually to manage the firm's cash balances in a way that ensures the company has enough cash to meet its obligations while also maximizing the return on any excess cash. This may involve keeping a certain level of cash reserves on hand for emergencies or investing excess cash in short-term securities to earn interest. The ultimate goal is to maintain an optimal balance of cash to meet the company's needs.
Learning Objectives
- Recognize the paramount importance and methodology of managing cash flows, including the pros and cons linked with distinct strategies for managing cash.
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