A large company with a temporary surplus of funds is most likely to buy:
A) bank bills.
B) convertible notes.
C) debentures.
D) shares.

Question

Quizplus · Accepted Answer

Bank bills are short-term debt securities that mature within a year and are issued by banks. They are a safe and liquid investment option and can provide a return on the surplus funds while also maintaining liquidity. Convertible notes, debentures, and shares are long-term investment options and may not be suitable for temporary surplus funds as they involve a higher degree of risk and may not provide immediate liquidity.

A Large Company with a Temporary Surplus of Funds Is