Marketable securities are liquid assets.Holding too low an amount of these liquid assets may adversely affect a firm's creditworthiness and lower its credit rating,resulting in higher future costs for securing both short- and long-term funds.

Question

Quizplus · Accepted Answer

Marketable securities are considered liquid assets and holding insufficient amounts of these assets can have a negative impact on a firm's creditworthiness, resulting in higher costs for securing both short- and long-term funds. Therefore, the statement is true.

Marketable Securities Are Liquid Assets