One good reason to hold cash is that cash provides more liquidity than securities.

Name: One good reason to hold cash is that cash provides more liquidity than securities.
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Cash can easily be used to make purchases or pay bills, while securities (such as stocks or bonds) may need to be sold first before the cash can be obtained. This can take time and potentially result in losses if the securities have decreased in value.

One Good Reason to Hold Cash Is That Cash Provides