Cash-Equivalent Items

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Cash-equivalent items

Examples include Treasury bills and Banker's Acceptances.

Assets that can easily be changed into physical currency. Examples of cash equivalents include savings accounts, bonds (especially near their maturities), money markets, and cashier's checks. Cash equivalents (along with cash itself) represent a company's or individual's liquidity, which can be important for investors and banks. Cash-equivalent items are almost always included in measures of money supply. See also: M1, M2.

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Cash-Equivalent Items
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Financial Dictionary

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