4 ms·

The "cash" in the article does not mean physical cash. It means money in a bank account. Edit: or more accurately, > The cash portion should be kept in a mone

The "cash" in the article does not mean physical cash. It means money in a bank account. Edit: or more accurately, > The cash portion should be kept in a money market fund investing only in short-term U.S. Treasury securities

throwaway290 3y ago
That's kind of the opposite of cash...
- fbdab103 3y ago
  Cash is frequently used as shorthand for liquid.
  - ghaff 3y ago
    Liquid and low risk. Equities are usually liquid but they're not really cash equivalents at least at the individual consumer level.
- ghaff 3y ago
  So you don't consider it cash unless it's US Treasury notes stuffed in a mattress?
  - throwaway290 3y ago
    Uhm, mattress is optional, but the form of notes (or equivalent) is not. Words have meaning. Cash you have physically and it shelters you from incompetent/rogue financial companies and governments. If you use "cash" to mean something else then what is the word for cash?
    - ghaff 3y ago
      Like everyone else, a liquid and very low risk (modulo inflation) financial instrument. (The definition is often a bit broader in financial statements.) I'd posit that, in this day and age, $100K (or whatever) in bank notes is going to do you very little good if you lose access to all your accounts.
      - throwaway290 3y ago
        > Like everyone else, a liquid and very low risk (modulo inflation) financial instrument. You clearly misread my question. I'll rephrase for legibility then: What is the word for cash (as in "physical money not in a bank") if you use "cash" to mean the opposite ("money in a bank")? Is it now a concept so rarely used that term is unnecessary? Also wow, didn't know you can't buy a car or a house with cash in US anymore, interesting times. Which year did it become illegal?
        DennisP 3y ago
        Words can have more than one meaning, depending on context. For investors talking about asset allocation, "cash" means t-bills, money market, or money in the bank.
        ghaff 3y ago
        It depends on the context. In the context of paying for your dinner, it means bills/notes. In the context of personal or corporate finances, it means liquid, low-risk investments. >Also wow, didn't know you can't buy a car or a house with cash in US anymore, interesting times. Which year did it become illegal? It's not illegal but I'd guess in a lot of situations involving (legal) high dollar transactions, the seller is probably going to tell you to take your briefcase of $100 bills to the bank and get a cashier's check--which will also kick off some raised eyebrows and financial reporting obligations.

throwaway290 3y ago

That's kind of the opposite of cash...

fbdab103 3y ago
Cash is frequently used as shorthand for liquid.
- ghaff 3y ago
  Liquid and low risk. Equities are usually liquid but they're not really cash equivalents at least at the individual consumer level.
ghaff 3y ago
So you don't consider it cash unless it's US Treasury notes stuffed in a mattress?
- throwaway290 3y ago
  Uhm, mattress is optional, but the form of notes (or equivalent) is not. Words have meaning. Cash you have physically and it shelters you from incompetent/rogue financial companies and governments. If you use "cash" to mean something else then what is the word for cash?
  - ghaff 3y ago
    Like everyone else, a liquid and very low risk (modulo inflation) financial instrument. (The definition is often a bit broader in financial statements.) I'd posit that, in this day and age, $100K (or whatever) in bank notes is going to do you very little good if you lose access to all your accounts.
    - throwaway290 3y ago
      > Like everyone else, a liquid and very low risk (modulo inflation) financial instrument. You clearly misread my question. I'll rephrase for legibility then: What is the word for cash (as in "physical money not in a bank") if you use "cash" to mean the opposite ("money in a bank")? Is it now a concept so rarely used that term is unnecessary? Also wow, didn't know you can't buy a car or a house with cash in US anymore, interesting times. Which year did it become illegal?
      - DennisP 3y ago
        Words can have more than one meaning, depending on context. For investors talking about asset allocation, "cash" means t-bills, money market, or money in the bank.
      - ghaff 3y ago
        It depends on the context. In the context of paying for your dinner, it means bills/notes. In the context of personal or corporate finances, it means liquid, low-risk investments. >Also wow, didn't know you can't buy a car or a house with cash in US anymore, interesting times. Which year did it become illegal? It's not illegal but I'd guess in a lot of situations involving (legal) high dollar transactions, the seller is probably going to tell you to take your briefcase of $100 bills to the bank and get a cashier's check--which will also kick off some raised eyebrows and financial reporting obligations.