A cash equivalent must be readily convertible to a known amount of cash, and must be sufficiently close to its maturity so its market value is unaffected by interest rate changes.

Name: A cash equivalent must be readily convertible to a known amount of cash, and must be sufficiently close to its maturity so its market value is unaffected by interest rate changes.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This is the definition of a cash equivalent. It must meet both criteria to be considered as such.

A Cash Equivalent Must Be Readily Convertible to a Known