Finance English
Banking

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.

Certification Exam Relevance

CFAACCAFRM

Who Needs to Know This Term?

  • Financial Analysts
  • Bankers
  • Traders

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Frequently Asked Questions

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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