Discuss in detail the services generally offered by banks under the Cash management services  arrangement

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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The term Cash Management refers to the day-to-day administration of managing cash inflows and outflows. Because of the multitude of cash transactions on a daily basis, they must be managed. The ultimate goal of cash management is to maximize liquidity and minimize the cost of funds and it is extremely crucial for any organization as mismanagement can lead to financial distress. This impacts future growth for the company. Maintaining cash balances while earning a return on idle cash are also top concerns.
Cash management allows estimating the cash profits and not just profits from outstanding 
incomes and credit sales. It helps in detecting cash embezzlement. It allows in speeding up the 
working capital cycle. It helps in rewarding such debtors that make quicker payments.
Discuss in detail the services generally offered by banks under the Cash management services 
arrangement.

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