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Essay text:
Now we will look at some techniques to help manage cash inflows and outflows. The techniques used to manage cash are important tools. Managing cash is one of the most important responsibilities of the financial manager.
Discussion of a Key Point, Thread, or Objective
Companies and individuals hold cash for three main reasons: to conduct transactions, for precautionary purposes, and to take advantage of speculative opportunities. They may also accumulate cash in preparation for payment of a future obligation, such as maturing bonds, or to meet the compensating balance requirements of their bank...
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