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 is 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 is easily and quickly convertible to a known amount of cash, typically within 90 days. Examples include Treasury bills, money market funds, and commercial paper.

A Cash Equivalent Is