Cash on hand provides:
A)low return, high liquidity, and low default risk.
B)high return, high liquidity, and low default risk.
C)high return, high liquidity, and high default risk.
D)low return, high liquidity, and high default risk.

Question

Quizplus · Accepted Answer

Cash on hand provides low return because it earns little to no interest. However, it has high liquidity because it can easily be used to pay for expenses or investments. Additionally, cash on hand has low default risk because it is not subject to market fluctuations or credit risk. Therefore, option A is the best choice.

Cash on Hand Provides