Cash reserves

(1) Cash balances available to a production or service company earmarked to meet future liabilities as they arise, for example cost overruns or debt service. The optimal volume of the serve also is a function of estimated unanticipated needs. The amount of cash reserves differs among companies. While a company with low cash reserves may be able to borrow, the debt service puts more pressure on future cash reserves. If cash reserves are depleted and credit is unavailable the company may default on their debts and be forced into bankruptcy.
(2) The additional liquid resources available to an investment company as part of the funds investment strategy.
(3) For individuals the savings or credit held to handle emergencies or other contingencies.
(4) In banking cash deposits as well as short-term bank deposits, money market instruments, and public sector debt.