A firm with excess cash needs the funds for a payment after two months, the funds should not be invested in
A) commercial paper and repurchase agreements
B) Treasury bills and Treasury bonds
C) negotiable certificates and Treasury bills
D) bankers' acceptances and commercial paper

Question

A firm with excess cash needs the funds for a payment after two months, the funds should not be invested in​
A) ​commercial paper and repurchase agreements
B) ​Treasury bills and Treasury bonds
C) ​negotiable certificates and Treasury bills
D) ​bankers' acceptances and commercial paper

Quizplus · Accepted Answer

Treasury bonds are long-term investments and are not suitable for a short-term need of two months.

A Firm with Excess Cash Needs the Funds for a Payment