Required financing and excess cash are typically viewed as short-term. Therefore, required financing may be represented by a line of credit and excess cash is assumed to be invested in a redeemable guaranteed investment certificate.

Question

Quizplus · Accepted Answer

Required financing and excess cash are indeed short-term in nature and can be managed using tools such as a line of credit for required financing and a redeemable guaranteed investment certificate for excess cash management.

Required Financing and Excess Cash Are Typically Viewed as Short-Term