3 FINANCIAL INSTRUMENTS a Cash and ShortT erm Investments The Agency has 596 million invested in bank balances and term deposits as follows b Cr edit Risk The Agency is exposed to low cr edit risk because r eceivables ar e due fr om municipalities and payment is usually collected in full c Cash Flow Risk The Agency has extended a 120 million loan to Ontario Infrastructur e and Land Corporation with a variable inter est rate set at four basis points below the average monthly Canadian Dollar Of fer ed Rate It also has term deposits and bank balances that ar e sensitive to the pr evailing inter est rates As a r esult it is exposed to a cash fow risk r elated to the fuctuations in inter est rates d Other Other than as described in these notes the Agency is not exposed to any additional curr ency liquidity or other price risk on its fnancial instruments in thousands of dollars Bank Balances 17418 T erm deposits due within a year Inter est rates 235240 22431 Cash and ShortT erm Investments 39849 T erm deposits due within two years Inter est rates 222227 17058 56907 The fair value of cash and shortterm investment appr oximate carrying value 32 Ontario Clean W ater Agency 2012 Annual Report