A firm that wishes to minimize risk when investing idle cash would be least likely to buy
A)commercial paper.
B)long-term corporate bonds.
C)certificates of deposit.
D)Treasury bills of the U.S.government.

Question

Quizplus · Accepted Answer

Long-term corporate bonds have a higher risk than other investment options, as they are subject to interest rate fluctuations, credit risk, and the possibility of the issuer defaulting. A firm wishing to minimize risk would be better off investing in options such as the certificates of deposit or Treasury bills of the U.S. government, which offer lower yields but are considered safer investments.

A Firm That Wishes to Minimize Risk When Investing Idle