Which of the following types of marketable securities is most suitable for a smaller firm with only a few thousand dollars to invest at any given time?

Question

Quizplus · Accepted Answer

Money market mutual funds are a suitable option for smaller firms with only a few thousand dollars to invest at any given time because they typically offer low investment minimums and provide low-risk, short-term investment opportunities. They also provide diversification through investing in a variety of low-risk securities, such as Treasury bills, commercial paper, and repurchase agreements. This allows the firm to gain exposure to different types of investments without having to make a substantial investment in each individual security. Additionally, money market mutual funds are highly liquid and can be easily sold or redeemed for cash when needed.

Which of the Following Types of Marketable Securities Is Most