Saturday, August 19th 2017

What is Cash?

Cash is a catch-all term for any short-term income investment that essentially has historically had zero risk of losing money. This includes money in a savings account, Certificates of Deposit with 1 year or less until maturity, Treasury Bills, and money market instruments of all types. Treasury Bills, specifically, are considered the risk-free rate of return in countless risk-adjusted return calculations, pricing of derivatives and nearly all financial formulas.

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