cashes

Cash, in everyday usage, refers to physical currency—banknotes and coins—used as a medium of exchange. The term cashes can also refer to cash holdings or cash on hand held by individuals, businesses, or institutions. In most countries, banknotes and coins are issued by a national central bank or monetary authority and are designated as legal tender to settle debts.

Cash serves three primary functions: it is a medium of exchange, a unit of account, and a store of value. Banknotes and coins come in various denominations and include security features to deter counterfeiting. Cash is highly liquid, allowing immediate settlement without intermediaries, but it is susceptible to theft, loss, and erosion of purchasing power through inflation. Many jurisdictions also recognize cash equivalents—short-term, highly liquid assets that can be rapidly converted to cash—for liquidity management.

Cash is managed by individuals, businesses, and public institutions. For businesses, cash handling involves collection, storage in safes or vaults, and deposits, often supported by armored-car services and cash-management systems. Households manage cash through budgeting and spending decisions. Cash-flow management aims to match inflows with outflows to maintain liquidity and minimize borrowing costs.

In the modern economy, the use of cash has declined in many regions as card payments, mobile wallets, and electronic transfers become more prevalent. This shift raises considerations for financial inclusion, security, and monetary policy. Some policymakers seek to balance efficiency with access to cash, ensuring that those who rely on cash can continue to transact. The concept also appears in phrases such as “to cash a check” or “to cash in” a financial instrument.