Which One of the Following Is Not Considered to Be

question 59

Multiple Choice

Which one of the following is not considered to be a cash equivalent?

• A) Corporate commercial paper due in 90 days after purchase
• B) U.S.Treasury bills with an original maturity of six months
• C) A money market account with a stock brokerage firm
• D) A certificate of deposit with a term of 75 days when acquired

---

Definitions:

Par Value

The face value of a bond or stock as stated by the issuing company, which may differ from its market value.

Semiannually

Occurring twice a year, typically every six months, often used in the context of payments, evaluations, or reporting.

Contract Rate

The contract rate is the interest rate specified in a financial contract or agreement.

Interest Payments

Interest payments are amounts paid for the use of borrowed money or for the delay in repayment of a debt.