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For my own clarification, are financial instruments "money"? I think common people, like me, have a hard time to distinguish money from cash and cash-equivalent
by anticristi 6y ago
For my own clarification, are financial instruments "money"? I think common people, like me, have a hard time to distinguish money from cash and cash-equivalents.
A bond from an AAA corporate might not be money, but it's so liquid that it's as good as cash to me. :D
- x87678r 6y agoNo one can agree exactly what money is so that's why you see a bunch of arguments like this. A stock market billionaire who has a small mortgage on one of their properties has no money - he owes money. You can see different countries have different definitions. https://en.wikipedia.org/wiki/Money_supply#Definitions_of_%22money%22 https://en.wikipedia.org/wiki/Money_supply#Definitions_of_%2...
- SpicyLemonZest 6y agoThey're not. There are actually multiple different definitions of "money" in use, because it's complicated to define exactly what distinguishes money from a financial instrument, but corporate bonds aren't included in any definition I'm aware of.