Optimal Balance of Marketable Securities

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The optimal balance of marketable securities held to take care of probable deficiencies in the firm's cash account is referred to as the "controlled cash" segment in one's portfolio of short-term marketable securities.

Short-term marketable securities are investments that can be easily bought and sold on the open market and typically have maturities of less than one year. These securities are used by firms to manage their cash positions, ensuring that they have enough cash available to meet their immediate financial obligations.

The controlled cash segment is the portion of a firm's short-term marketable securities portfolio that is used to cover anticipated cash shortages. This segment is managed to maintain a balance between the need for cash and the desire for higher returns on investment. The objective of the controlled cash segment is to ensure that the firm has sufficient liquidity to meet its financial obligations while also generating a reasonable return on investment.

The other options provided in the question are as follows:

• Ready cash: This refers to cash that is readily available to the firm for immediate use. It is not an investment but rather a form of cash on hand.

• Free cash: This term is often used to refer to cash that is available to a firm after all of its operating expenses have been paid. It is also not an investment but rather a measure of the firm's financial position.

• Cash and cash equivalent: This term refers to cash and other assets that can be easily converted to cash, such as bank deposits, money market funds, and Treasury bills. It is a broader category than short-term marketable securities and includes both investments and cash on hand.

In summary, the optimal balance of marketable securities held to take care of probable deficiencies in the firm's cash account is referred to as the "controlled cash" segment in one's portfolio of short-term marketable securities.