Cash and Cash equivalents are defined as short-term, highly liquid investments or declarations which are held as cash, or can be readily converted to cash for immediate use.

We cannot stress enough the importance of liquidity. The maintenance of a balance in money market funds offers maximum possible liquidity and security of principal (at least in current dollar terms). Brokers generally offer a choice of several money market funds. These include US Government or Treasury portfolios, municipal portfolios, or general money market portfolios which typically hold U.S. and foreign issues, including commercial paper, asset-backed commercial paper, CDs, variable and floating-rate debt securities, bank notes and repos.

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