Which of the following investments is not likely to be a proper investment for temporarily idle cash?
A) Commercial paper.
B) Treasury bills.
C) Recently issued long-term corporate bonds.
D) Government bonds due shortly.
E) AT&T bonds due within one year.

Question

Quizplus · Accepted Answer

Recently issued long-term corporate bonds are not a proper investment for temporarily idle cash because they have a long maturity and are more volatile in price than short-term securities. Short-term securities like commercial paper, Treasury bills, government bonds due shortly, and AT&T bonds due within one year are all better options for temporarily idle cash because they are lower risk and have a shorter maturity.

Which of the Following Investments Is Not Likely to Be