Question: Please explain simply as much as you can. What are the major reasons for holding cash? What is the difference between disbursement float and collection

Please explain simply as much as you can.

  1. What are the major reasons for holding cash?
  2. What is the difference between disbursement float and collection float?
  3. How does a lock box system work?
  4. What are the major characteristics of short-term securities?

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