A cash equivalent is:
A)An investment readily convertible to a known amount of cash.
B)Close to its maturity date but its market value may still be affected by interest rate changes.
C)Generally within 12 months of its maturity date.
D)Is not considered highly liquid.
E)Another name for cash.

Question

Quizplus · Accepted Answer

A cash equivalent is an investment that can be easily converted to cash, such as treasury bills or money market funds. It is readily convertible to a known amount of cash, making it highly liquid and easily tradable.

A Cash Equivalent Is