Connect Part tpsnewconnectmheducationcomflowconnecthtml ers

Connect Part tps://newconnect.mheducation.com/flow/connect.html ers 16,18 & 19 A cash equivalent must be readily convertibie to a known amo unaffected by interest rate changes. True or False False True

Solution

The statement is True

A cash equivalent must be readily convertible in to a known amount of cash and so near to maturity so that they carry less risk of changing in value due to interest rate changes .