What does 'holding cash' mean?
Question:
Is it cash in hand that someone has, that hasn't been put into a bank account, e.g on a balance sheet it says Stock, Debtors,Bank, Cash - is it therefore 'cash'?
Please can anyone give me some help? Thanks :-)
Answer:
Holding "cash" generally means you have dollars put in money markets. Money markets are fixed income vehicles that hold your money with the safety of principal in mind. Basically your money stays liquid or as liquid as possible, meaning you have access to your money when you need it.
hold or holding cash is the cash that you have in hand after doing the banking if you total your in-comings and deduct your outgoings and banking the remainder is the cash you should have in the safe of cash box its what you may think of as petty cash
Holding Cash is a term defining a portion of an investment portfolio. ie: portions of stocks, bonds, etc. The cash portion can be anything from CD's to Money Market accounts or simply a savings account.
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