Cash and Cash Equivalents: Rapid Fire

What this video covers

• The FDIC insurance formula: $250,000 per depositor, per insured bank, per ownership category, and what it covers versus what it does not
• Why cash equivalents preserve principal rather than maximize growth or income, and the lender-borrower relationship in every money market transaction
• Commercial paper as unsecured, discounted corporate notes, and the 270-day maturity ceiling for Securities and Exchange Commission (SEC) registration exemption
• Treasury bill (T-bill) maturities, par values, and the state and local tax exemption, plus why bank discount yield understates true return versus bond equivalent yield
• The negotiable certificate of deposit (CD) and brokered CD distinction from standard bank CDs, including secondary-market risk and why FDIC insurance does not prevent market losses
• Why money market deposit accounts (MMDAs) are FDIC-insured bank products while money market mutual funds (MMFs) are SEC-regulated securities with a $1.00 NAV target that is not guaranteed
• The SEC maturity limits that constrain money market mutual funds: 60-day weighted average maturity, 120-day weighted average life, and 397-day single-security maximum