What is Idle Money?
Idle Money Funds held in cash or low-yield accounts that are not actively invested or used for operational purposes, resulting in opportunity cost and reduced returns for individuals or institutions.
Source: CFA Institute, IFRS Foundation, FASB (GAAP), Basel III Framework
How is “Idle Money” Used in Practice?
Financial managers seek to minimize idle money by reallocating excess cash into short-term investment vehicles to enhance returns.
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Who Needs to Know This Term?
- Financial Analysts
- Bankers
- Traders
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What is Idle Money?
Funds held in cash or low-yield accounts that are not actively invested or used for operational purposes, resulting in opportunity cost and reduced returns for individuals or institutions.
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