Emergency Cash Needs

Some companies do, however, rely on them for long-term funding by continually rolling over their commercial paper. In the first chapter we looked at financial systems from a top-down perspective and tried to paint a big picture of the nature of financial intermediation. Emergency Cash Needs. These range from basic account management services such as transferring funds from one account to another, paying bills, setting up standing orders and so on, to more sophisticated functions such as buying mutual funds or subscribing to an Initial Public Offering (IPO). There is a potential opportunity to make a profit by buying Widgets in Cheapa, transporting them to Costlia and selling them at the higher prices prevailing there. Emergency Cash Needs. Monthly payments go to pay interest on the loan as in a traditional mortgage loan but a part also goes to pay the premiums on an investment policy. All companies must maintain a certain amount of assets in the form of cash or cash equivalents. Emergency Cash Needs.