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Short-Term Reserves

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Short-term reserves
Investments in interest-bearing bank deposits, money market instruments, U.S. Treasury bills, and short-term bonds.

Short-Term Reserves
Savings and investments that are expected to be liquidated in less than one calendar year. Examples of short-term reserves include deposits in banks, U.S. Treasury bills, and short-term certificates of deposit. See also: Money Market.


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The plan offers three age-based portfolios, which automatically adjust asset allocations among stocks, bonds and short-term reserves as a child approaches college age.
Furthermore, the association's operating and short-term reserves represented less than one month's budgeted expenses, causing bank overdrafts and the need to liquidate long-term investments in seasonal periods of cashflow shortages.
SAVINGS: Try to build up short-term reserves in tax-exempt savings accounts (TESSAS) or deposit accounts, which could provide a cushion in the event of redundancy.
 
 
 
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