The amount of cash a firm needs to be able to pay its bills is sometimes referred to as a(n)

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The amount of cash a firm needs to be able to pay its bills is referred to as a transactions balance, which is the minimum level of cash required to meet the firm's day-to-day transactions. Precautionary balance refers to the amount of cash held by a firm as a buffer against unexpected events, compensating balance is a requirement by a bank for a borrower to maintain a specified minimum balance in an account, and operating balance is not a commonly used term in finance.

The Amount of Cash a Firm Needs to Be Able