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Finance For Dummies

Finance For Dummies offers personal finance information on investing, retirement investing, finance, insurance, credit cards, loans and more. Personal finance education is our goal.

Wednesday, September 27, 2006

Cash and Cash Equivalents

Cash and cash equivalents are type of investment.

They . . .

  1. Preserve your principal
  2. Have low to high liquidity
  3. Are sometimes FDIC insured
  4. Have very low fluctuation of principal and return
  5. Are taxed as ordinary income in the year received evn when you roll it over
  6. Are short-term debt instrument issued by a bank or the U.S. government

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