The maintenance of a cash balance is an investment by the company.

Name: The maintenance of a cash balance is an investment by the company.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The company invests in maintaining a cash balance as it allows them to have money readily available for various purposes such as operational expenses, investments, and potential emergencies. Keeping a cash balance is considered a conservative investment strategy as it provides a safety net for the company in times of financial uncertainty.

The Maintenance of a Cash Balance Is an Investment by the Company