A cash balance held in reserve for unforeseen fluctuation in cash flows is called a balance.

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A balance held in reserve for unforeseen fluctuations in cash flows is called a precautionary balance. This helps a company prepare for unexpected situations or emergencies that may require access to cash. A compensating balance, on the other hand, is a minimum balance that a bank requires a customer to maintain in order to receive certain services or benefits. A speculative balance is a balance held for the purpose of making investments or taking risks with the hope of earning a high return, while a cash balance simply refers to the amount of cash a company holds at a given time.

A Cash Balance Held in Reserve for Unforeseen Fluctuation in Cash