Cash reserves are essential for any business to ensure a steady flow of funds in times of crisis or unexpected emergencies. There are various synonyms for the term cash reserves, such as liquid assets, emergency funds, rainy day savings, emergency reserve, or contingency funds. These synonyms signify the same meaning of having money set aside as a cushioning for a rainy day. Companies are required to maintain sufficient cash reserves to cover their operating expenses and any unplanned expenses that may arise. Regardless of the term used to describe cash reserves, the main objective behind it is to have savings that can help businesses survive turbulent times.