Cash Close
Together with stocks and bonds, cash is an asset class. Asset classes define the universe of investments used in making asset allocation decisions. In addition to greenbacks, cash assets include saving and deposit accounts, money market accounts (MMAs), money market mutual funds, short-term certificates of deposit (CDs), and Treasury bills. Cash is the base currency used for buying and selling goods and services in an economy. As a result, it is the most liquid and least-risky form of currency. However, its low risk relative to that of other asset classes results in a lower rate of return.