josephmcintosh2587 josephmcintosh2587
  • 03-12-2019
  • Social Studies
contestada

An investment that is readily convertible to a known amount of cash and that is sufficiently close to its maturity date so that its market value is unaffected by interest rate changes is a(n):

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Kristiania Kristiania
  • 03-12-2019

Answer:

Cash equivalent.

Explanation:

Cash equivalents -

The highly liquid with high credit , type of securities , which are invested for a short period of time , is known as cash equivalents  .

These types of securities consists of low risk and low returns .

Cash is considered to be the most liquid , hence anything which have the liquidity as of cash is known as the cash equivalents .

The example of Cash equivalents are -

corporate commercial paper , government Treasury bills and various money market instruments etc .

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