Cash doesn't generate returns and as far as cash equivalents such as certificates of deposit (CDs), Treasury bills or money market funds are concerned... well, let's just say that even if there is a return involved, it's not exactly spectacular. So... does this mean cash and cash equivalents should be avoided? No. Treasury bills, money market funds, certificates of deposit (CDs) and of course cash have their very well-determined role in the ecosystem. You don't buy Treasury bills to get rich. The same way, money market funds or certificates of deposit aren't exactly top choices if that's your goal. Instead, as we're about to find out today, cash and cash equivalents should be considered insurance policies :) If you'd like to follow me on social media, use one of the links below: https://www.facebook.com/oneminuteeconomics https://twitter.com/andreipolgar https://ro.linkedin.com/in/andrei-polgar-9a11a561