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Cash equivalents include commercial paper and bonds. Cash equivalents are not the same as cash.
by tathougies 7y ago
Cash equivalents include commercial paper and bonds. Cash equivalents are not the same as cash.
- bwanab 7y agoThere’s a reason they’re called cash “equivalents”.
- tathougies 7y agoUm right, but commercial paper and bonds have interest rates, unlike normal cash. So while they're easily converted to cash, they do not suffer as badly from inflation.
- quickthrower2 7y agoThey also carry risk of default.