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Investments glossary

Unrestricted Cash

Unrestricted cash refers to monetary reserves that are not tied to a particular use. Unrestricted cash can be used for any purpose since it is not earmarked for a specific use and is extremely liquid. Often, in order to satisfy debt covenants, firms will have to maintain a certain level of cash on their balance sheets — the amount that exceeds the requirements is referred to as unrestricted cash.

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