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0 pointsbwanab5y ago0 comments

There’s a reason they’re called cash “equivalents”.

0 comments

Um right, but commercial paper and bonds have interest rates, unlike normal cash. So while they're easily converted to cash, they do not suffer as badly from inflation.

quickthrower25y ago

They also carry risk of default.

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0 pointsbwanab5y ago0 comments

There’s a reason they’re called cash “equivalents”.

0 comments

tathougies5y ago

Um right, but commercial paper and bonds have interest rates, unlike normal cash. So while they're easily converted to cash, they do not suffer as badly from inflation.

quickthrower25y ago

They also carry risk of default.

j / k navigate · click thread line to collapse