Which of the following assets are included in the asset class, CASH, according to the definitions used in this book?
A)certificates of deposit
B)municipal bonds
C)long-term Treasury bonds
D)both B and C

Question

Quizplus · Accepted Answer

According to the definitions used in this book, only physical currency, demand deposits, and short-term marketable securities are included in the asset class of Cash. Certificates of deposit are considered time deposits and not part of cash, while municipal bonds and long-term Treasury bonds are considered fixed income securities and not part of cash. According to the definitions used in the book, only physical cash and its equivalents, such as checking accounts, savings accounts, and money market accounts are included in the asset class of CASH. Certificates of deposit are not considered cash because they are time deposits that cannot be withdrawn without penalty. Municipal bonds and long-term Treasury bonds are debt securities and therefore not considered cash.

Which of the Following Assets Are Included in the Asset