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These are issued using the country’s domestic currency.Investors take a look at political risks, interest rate risks, and inflation when investing in government bonds.

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Cash equivalents also serve as one of the most important health indicators of a company’s financial system.

Analysts can also estimate whether it is good to invest in a particular company through its ability to generate cash and cash equivalents since it reflects how a company is able to pay its bills throughout a short period of time.

When issued to companies, companies essentially lend the government money.

T-bills are provided in denominations of $1,000 to $5 million.

Money market funds are like checking accounts that pay higher interest rates provided by deposited money.

Money market funds provide an efficient and effective tool for companies and organizations to manage their money since they tend to be more stable compared to other types of funds like mutual funds.

Cash equivalents, also known as "cash and equivalents," are one of the three main asset classes in financial investing, along with stocks and bonds.

These securities have a low-risk, low-return profile and include U. government Treasury bills, bank certificates of deposit, bankers' acceptances, corporate commercial paper, and other money market instruments.

21296 Issued in June 2015 NBER Program(s): Development of the American Economy, Labor Studies As shown in the 1930s by Hicks and Robinson the elasticity of substitution (`sigma`) is a key parameter that captures whether capital and labor are gross complements or substitutes.

Establishing the magnitude of `sigma` is vital, not only for explaining changes in the distribution of income between factors but also for undertaking policy measures to influence it.

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