Cash balance example sentences

If, instead of holding on to a certain cash balance, you put the money in a savings account in some bank you can earn interest on that money.The RBI monitors that the banks actually maintain the cash balance.For instance, we have seen that the banks maintain a minimum cash balance out of the deposits they receive.For example, cdr increases during the festive season as people convert deposits to cash balance for meeting extra expenditure during such periods.Thus your cash balance at the beginning and end of the month are Rs 100 and 0, respectively.Correct cash balance: It may happens that some of the receipts or payments are missing from either of the books and errors, if any, need to be rectified.This arise the need to look at the entries/errors recorded in both statements and other information available and compute the correct cash balance before reconciling the statements.If you receive your income weekly and pay your bills on the first day of every week, you need not hold any cash balance throughout the rest of the week; you may as well ask your employer to deduct your expenses directly from your weekly salary and deposit the balance in your bank account.The preference of the public for holding cash balances vis-´a-vis deposits in banks also affect the money supply.

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