cash equivalent

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Definitions from WordNet

Noun cash equivalent has 1 sense

cash equivalent - a highly liquid debt instrument with maturities of less than three months
--₁ is a kind of debt instrument, certificate of indebtedness
--₁ has particulars: commercial paper

Definitions from the Web

Cash Equivalent

Definition:

A cash equivalent refers to an asset or investment that holds a value similar to cash and can be easily converted into cash with minimal risk of loss.

Examples:

Noun:

1. The term "cash equivalent" can also apply to highly liquid financial instruments such as government bonds or money market funds.

2. As an investment strategy, keeping a portion of your portfolio in cash equivalents can provide stability and quick access to funds.

Adjective:

1. Mary's choice to invest in a cash equivalent instrument proved to be a wise decision.

2. It is important for businesses to maintain a certain level of cash equivalent assets to meet their short-term obligations.

Related Products:

Government bonds

Money market funds

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