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What is considered money that is readily available in accounts like savings and checking?

Reserve funds

The term that refers to money that is readily available in accounts such as savings and checking is known as reserve funds. These funds are typically liquid assets that can be easily accessed for transactions, providing immediate availability for spending or unexpected expenses.

Reserve funds are distinguished from other types of funds, such as investment funds, which are generally designated for longer-term growth and not as accessible without potential penalties or losses. Emergency funds are specifically allocated for unforeseen emergencies and, while similar in liquidity, carry the connotation of being savings set aside for specific, unexpected needs rather than general access. Expense accounts refer to funds allocated for specific operational costs or expenditures, which may not necessarily be immediately available for withdrawal or use in the same way as reserve funds.

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Investment funds

Emergency funds

Expense accounts

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