When a manufacturer invests in short-term marketable securities:
A)the return on investment is more important than the risk involved.
B)the securities are likely to have a maturity date more than a year in the future.
C)the market value of the securities is likely to fluctuate significantly.
D)risk avoidance is of great importance.

Question

Quizplus · Accepted Answer

Short-term marketable securities are typically chosen for their low risk and high liquidity, making risk avoidance a key consideration for manufacturers investing in them.

When a Manufacturer Invests in Short-Term Marketable Securities