Cash equivalents meet all of the following criteria except:

A) Readily convertible to a known cash amount.
B) Short-term investments purchased within 3 months of their maturity dates.
C) Have a market value that is not sensitive to interest rate changes.
D) Short-term U.S.treasury bills.
E) More liquid than cash.

Cash Equivalents

Investments of a short duration that are easily turned into fixed cash amounts and carry minimal risk of varying in worth.

Interest Rate Changes

Interest rate changes refer to the fluctuation of the cost of borrowing money or the return on investment, directly affecting economic activities such as loans and savings.