Question

What is a cash reserve? (Select the best answer.)

A group of equity investors who give you
money
Money your company owes to debt funders
O Money your company has in the bank
O Interest your company receives on its investments

Answer 1

Answer: Money your company has in the bank

Explanation: Cash reserve means money a company keeps in a bank to meet its short term/ emergency financial needs.

Cash is the most liquid form of cash reverse a company can keep. also a company can have short term funds like 3 months treasury bills and short term assets.