A firm that wishes to minimize risk when investing idle cash would be least likely to buy:
A) commercial paper.
B) long-term corporate bonds.
C) negotiable certificates of deposit.
D) Treasury bills of the Canadian government.

Question

Quizplus · Accepted Answer

Long-term corporate bonds typically carry a higher level of risk than other short-term investments, such as commercial paper, negotiable certificates of deposit, and Treasury bills. Therefore, a firm looking to minimize risk when investing idle cash would be least likely to buy long-term corporate bonds.

A Firm That Wishes to Minimize Risk When Investing Idle