By pooling its cash reserves,a firm can reduce the total size of the cash pool it must hold in highly liquid accounts.

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By pooling cash reserves, a firm can reduce the total size of the cash pool it must hold in highly liquid accounts, as it can use the pooled cash to meet its liquidity needs, reducing the need to hold excess cash in individual accounts. This can result in cost savings and more efficient cash management.

By Pooling Its Cash Reserves,a Firm Can Reduce the Total