Near cash instruments definition
Cash equivalents, also known as cash and equivalents, are one of the three main asset classes, along with stocks and bonds.How can the answer be improved? near cash instruments definition
Let us start by looking at the definition of a financial instrument, which is that a financial instrument is a contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of an other entity. With references to assets, liabilities and equity instruments
Near cash instruments definition free
Assets that can be quickly liquidated into cash or cashlike assets. For example, a shortterm investment or a norisk CD are investments and not cash one can spend. They are only cash once the certificate of deposit, for example, is requested to be liquidated.
Cash instruments can be classified into two types as securities and other cash instruments such as loans and deposits. Securities are readily transferable, whereas loans and deposits can be transferred only when both borrower and lender agrees for the transfer.
(plural cash instruments) (finance) A financial instrument that is marketable at close to par under almost all circumstances. In a liquidity crisis, some securities lose their claim to being cash instruments.
Near money (synonym: quasimoney) is a term used in economics to describe highly liquid assets which are not cash but can easily be converted into cash. Examples of near money are as
Near cash instruments such as food stamps or transport vouchers can be politically popular but have higher administrative costs than cash Gigafren Tax implications If a gift or award to an employee is cash or near cash (such as a gift certificate), it could be a taxable benefit to the employee.
Near money is an economics term describing noncash assets that are highly liquid, such as bank deposits, certificates of deposit (CDs) and Treasury Bills.
Financial instruments can be either cash instruments or derivative instruments: Cash instruments instruments whose value is determined directly by the markets. They can be securities, which are readily transferable, and instruments such as loans and deposits, where both borrower and lender have to
Rating: 4.56 / Views: 350