Final answer:
Notes receivable are not cash equivalents because they lack the short-term liquidity or maturity within 90 days that defines cash equivalents, like money market investments, Canadian Government Treasury bills, and commercial paper.
Step-by-step explanation:
All of the following are cash equivalents except: a) notes receivable. 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. Examples include money market investments, investments in Canadian Government Treasury bills, and commercial paper.
Money market accounts are included in M2 money supply, which includes all elements of M1 (physical cash and checking deposits) plus savings deposits, money market funds, and other time deposits. Notes receivable are typically not considered cash equivalents because they do not possess the same level of liquidity or do not mature in the short term; usually, they are due beyond the threshold, typically 90 days, used to define cash equivalents.
Understanding Bank Assets
A bank's assets include cash held in their vaults and monies that the bank holds at the Federal Reserve Bank, known as reserves. Additionally, loans that are made to customers and bonds also constitute bank assets. However, these are not typically categorized as cash equivalents due to their differing liquidity profiles and potential duration.