Which of the following characteristics does NOT apply to cash equivalents?
A) short-term
B) highly-liquid
C) readily convertible into cash
D) highly sensitive to interest rate changes

Question

Quizplus · Accepted Answer

Cash equivalents are investments that are short-term, highly liquid, and readily convertible into known amounts of cash with original maturities of three months or less, making them not highly sensitive to interest rate changes.

Which of the Following Characteristics Does NOT Apply to Cash