What Criterion Is Required for a "Cash Equivalent

question 3

Multiple Choice

What criterion is required for a "cash equivalent"?

• A)Convertibility into cash or insignificant risk of change in value.
• B)Insignificant risk of change in value.
• C)Convertibility into cash and insignificant risk of change in value.
• D)Convertibility into cash.

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Definitions:

Federal Reserve System

The central banking system of the United States, responsible for monetary policy, regulation of financial institutions, and maintaining financial stability.

Required to Join

This term seems vague without context and might not be a defined economic or general key term without additional information; thus, clarification is needed.

Thrift Institution

A financial organization that primarily accepts savings deposits and provides mortgage and loan services.

Commercial Bank

A financial institution that provides various services, including accepting deposits, lending money, and offering investment products to individuals and businesses.