We survey CFOs of public and private firms from 29 countries to examine whether and why firms from around the world use lines of credit versus non-operational (excess) cash for their corporate liquidity. We find that these two liquidity sources do not fulfill the same precautionary role but are instead employed to hedge against different risks. Our tests indicate that the unconditional liquidity provided by non-operational cash is held to guard against future cash flow shocks in bad times, while the conditional liquidity provided by credit lines is held to give firms the option to exploit future business opportunities available in good times. We also find that lines of credit are the dominant source of liquidity for most companies around the world, amounting to about 15% of assets, and that less than half of the cash held by companies is held for non-operational purposes, amounting to about 2% of assets. Across countries, firms make greater use of lines of credit when external credit markets are poorly developed.