Final answer:
Marketable Securities are not considered cash equivalents as they are investments with longer maturities and higher risks, unlike the liquidity and minimal risk associated with cash equivalents like Time deposits, Certificates of deposit, and Money Market funds.
Step-by-step explanation:
The question asks which of the following is not a "cash equivalent": A) Time deposits B) Certificates of deposit C) Money Market funds D) Marketable Securities. Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Typically, these are securities with original maturities of three months or less.
Based on the components of the M2 Money Supply, which includes Savings Deposits, Money Market Funds, Certificates of Deposit, and other Time Deposits, we can see that Time deposits, Certificates of deposit, and Money Market funds fit the description of cash equivalents due to their liquidity and minimal risk.
In contrast, Marketable Securities are generally considered investments rather than cash equivalents due to their longer maturities and potential for higher return along with higher risk, which is inconsistent with the characteristics of cash equivalents. Thus, the correct answer is D) Marketable Securities.