Generally, only investments with original maturities (to the investor) of less than three months qualify as a cash equivalent.

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This statement is true. Cash equivalents are highly liquid investments that can be easily converted into cash and are considered as good as cash. Generally, only investments with original maturities of less than three months qualify as a cash equivalent. Examples of cash equivalents include Treasury bills, commercial paper, and money market funds.

Generally, Only Investments with Original Maturities (To the Investor) of Less