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:

U.S. Treasury Bonds

Long-term government debt securities issued by the United States Department of the Treasury with a maturity of more than 10 years.

Foreign Stock

refers to shares of a company based outside the investor's own country.

Private Sector

The part of the economy that is owned and controlled by individuals and companies for profit rather than by the state.

Financial Difficulties

Situations where individuals or organizations are unable to meet financial obligations due to insufficient funds.