Which of the following is considered a cash equivalent?a) Stocks b) Money market funds c) Corporate bonds d) Real estate

b) Money market funds

Here's why:

a) Stocks: These are not considered cash equivalents because their value can fluctuate and they cannot be easily converted into cash without a significant change in value.

b) Money market funds: These are considered cash equivalents. They are short-term, highly liquid investments with a maturity date that was very short-term at the time of purchase. They are also considered low risk.

c) Corporate bonds: These are not considered cash equivalents. While they can be sold for cash, they are subject to interest rate risk and their value can fluctuate.

d) Real estate: This is not considered a cash equivalent because it cannot be quickly converted into cash without a significant change in value.