Money market securities are sometime referred to as “cash equivalents.” Why is this?

Money market securities possess a very high level of liquidity, meaning that in case of an emergency, they could be traded back for money in a relatively short amount of time, while the transaction costs remain minimal. However, these securities tend to have a lower return rate compared to other kinds of securities present on the market.

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Academic.Tips. (2022) 'Money market securities are sometime referred to as “cash equivalents.” Why is this'. 24 November.

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Academic.Tips. (2022, November 24). Money market securities are sometime referred to as “cash equivalents.” Why is this? https://academic.tips/question/money-market-securities-are-sometime-referred-to-as-cash-equivalents-why-is-this/

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Academic.Tips. 2022. "Money market securities are sometime referred to as “cash equivalents.” Why is this?" November 24, 2022. https://academic.tips/question/money-market-securities-are-sometime-referred-to-as-cash-equivalents-why-is-this/.

1. Academic.Tips. "Money market securities are sometime referred to as “cash equivalents.” Why is this?" November 24, 2022. https://academic.tips/question/money-market-securities-are-sometime-referred-to-as-cash-equivalents-why-is-this/.


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Academic.Tips. "Money market securities are sometime referred to as “cash equivalents.” Why is this?" November 24, 2022. https://academic.tips/question/money-market-securities-are-sometime-referred-to-as-cash-equivalents-why-is-this/.

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"Money market securities are sometime referred to as “cash equivalents.” Why is this?" Academic.Tips, 24 Nov. 2022, academic.tips/question/money-market-securities-are-sometime-referred-to-as-cash-equivalents-why-is-this/.

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