Answer:
c. cash equivalent
Step-by-step explanation:
highly liquid means can be made into cash quickly
Cash equivalent examples are money market funds Treasury bills. Treasury notes. Commercial paper.
in 2008 a problem with money market funds signaled a banking crisis. banks were giving mortgages to people with bad credit histories. on top of that those mortgages were insured so if someone couldn't pay the mortgage the insurers would pay. but at that time there were too many people who couldn't pay mortgages
a. stock is a share of ownership in a company. can't make it into cash unless you sell it.
d. mutual fund : basically a stock of stocks. company gathers money to buy a bunch of different stocks. whole thing is called a portfolio. company sells stocks of that portfolio. those stocks are mutual funds.
b. a bond is basically a loan. bond lasts for a period of time. can't sell it until that period is over. otherwise there is a penalty.
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hedge funds : the words hedge in hedge means to reduce risk. they make it for people with more money. it combines risky, non risky, long term, & short term investments to hedge or reduce risk.