If a money market investor has a temporary cash surplus but fails to invest that surplus for a day, the income lost can be made up by investing the funds at interest the following day.

Question

Quizplus · Accepted Answer

The income lost from not investing the cash surplus for a day cannot be made up simply by investing at interest the following day, as the opportunity to earn interest on that specific day is permanently lost.

If a Money Market Investor Has a Temporary Cash Surplus