Final answer:
Accounts receivable is not considered cash since it represents money owed to the company and is not immediately liquid. Cash usually includes physical currency, money orders, and checks ready to be cashed. Money market accounts are part of M2 and are liquid but not counted as immediate cash.
Step-by-step explanation:
Cash generally includes all of the following except: a. Accounts receivable b. Money orders c. Cheques d. Currency. The correct answer is 'accounts receivable'. This is because cash is considered to be a liquid asset, which includes physical currency such as coins and bills, money orders, and cheques that are readily available or can be quickly converted to cash. Accounts receivable, on the other hand, represents money that a company is owed by its customers for goods or services delivered but not yet paid for; hence, it is not liquid until it is collected.
Money market accounts are considered part of M2 money supply and not immediate cash, as they include funds in accounts that earn interest but have limited transaction abilities compared to checking accounts. It's also noteworthy that M1 money supply includes currency in circulation and demand deposits, such as checking accounts, that banks must provide 'on demand' to the account holder. Therefore, although money market accounts hold liquid funds, they are not considered as 'cash' on hand like currency or checkable deposits.
As for the operations of a bank, cash held in vaults and at the Federal Reserve falls under the bank's assets, along with reserves, loans made to customers, and bonds resulting from various financial investments.