Cash management versus liquidity management what is the difference bet

QUESTION

Cash management versus liquidity management what is the difference between cash management and liquidity management?
Solution: Cash management involves collection, handling and usage of cash. It involves assessing cash flow, market liquidity, and investments. Liquidity management means ensuring that the firm maintaining sufficient cash and liquid assets to meet the short term debt¦

. Cash management concerns with optimal collection of cash as well as disbursement of cash. On the other side, liquidity management concerns with the optimal quantity of assets to hold.

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