If a firm has excess cash that it will need after a period of four months, the financial manager may acquire
1)negotiable certificates of deposit
2)Treasury bills
3)commercial paper
A)1 and 2
B)1 and 3
C)2 and 3
D)1, 2, and 3

Question

If a firm has excess cash that it will need after a period of four months, the financial manager may acquire
1)negotiable certificates of deposit
2)Treasury bills
3)commercial paper​
A)​1 and 2
B)​1 and 3
C)​2 and 3
D)​1, 2, and 3

Quizplus · Accepted Answer

Negotiable certificates of deposit, Treasury bills, and commercial paper are all short-term investment vehicles suitable for a firm looking to invest excess cash for a period of four months. These options provide liquidity and relatively low risk, making them appropriate for short-term cash management needs.

If a Firm Has Excess Cash That It Will Need