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Unformatted text preview: Most large businesses will keep their operating cash accounts in what is called Money Market accounts, which typically earn a higher interest rate than regular savings accounts. Also, cash management involves the analysis of foreign currency and hedges against movement in other currencies. For example, if an international company does business in Japan, where it holds large balances in cash, and the company is worried the Japanese Yen is weak and will decrease in value, it should move it's cash to be held in some other currency that it thinks will be stronger and retain its value. So yes companies have different cash management goals depending on their size and profitability....
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This note was uploaded on 05/07/2010 for the course ACCOUNTING ACC225 taught by Professor Professor during the Spring '10 term at University of Phoenix.
- Spring '10