Many firms hold at least their subsidiaries' precautionary cash reserves at a centralized depository,having each subsidiary hold its own day-to-day-needs cash balance.

Question

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Many firms choose to centralize their subsidiaries' precautionary cash reserves to better manage and optimize their overall cash position, while allowing each subsidiary to hold its own day-to-day cash balance for operational needs.

Many Firms Hold at Least Their Subsidiaries' Precautionary Cash Reserves