What it is:
Idle funds arethat are not invested.
How it works (Example):
money. And just as when people do not work, when money is not invested, it is not earning money. It is idle., like people, must work in order to earn
Why it Matters:
From a strictly financial perspective, idle funds are wasted. When is increasing, idle funds are even dangerous because the longer they are idle, the less they are worth.
From a consumer perspective, it is often necessary to keep some funds "uninvested" in a checking account or similar in order to pay bills and whatnot (companies face this same ). The idea is to use forecasting and budgeting to keep these idle funds to a minimum, however.