Cash and Investments That Can Be Easily Converted into Cash

question 98

Multiple Choice

Cash and investments that can be easily converted into cash are termed

• A)capital assets.
• B)liquid assets.
• C)illiquid assets.
• D)depositable assets.
• E)None of the above are correct.

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Definitions:

Board of Governors

A governing body, often of a bank, organization, or college, responsible for overseeing its management and operations.

Monetary Policy

Actions taken by a central bank to control the money supply in an economy, influencing interest rates and inflation.

Federal Securities

Financial instruments issued by the federal government, including Treasury bills, notes, and bonds, which are used to finance government spending.

Depository Institutions

Commercial banks and thrift institutions; financial institutions that accept deposits from the public