Question

Cash equivalents meet all of the following criteria except: Multiple Choice Readily convertible to a known cash amount. Short-term investments purchased within 3 months of their maturity dates. Have a market value that is not sensitive to interest rate changes. Short-term U.S. treasury bills. More liquid than cash.

Answer 1

More liquid than cash is the correct option

Step-by-step explanation:

Cash equivalents are cash or other short term assets can be converted into cash in no distant time without losing significant portion of its value.

All the options enumerated met the criteria cited above except the last option,cash equivalents are more liquid than cash.

Cash equivalents cannot be more liquid than cash since cash equivalents at best cash and at worst short term easily convertible assets.

The correct option therefore is the last option,more liquid than cash