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If a Firm Invests Its Cash Balances in Money Market

Question 72

Multiple Choice

If a firm invests its cash balances in money market accounts:


A) it will have unlimited liquidity and earn a high rate of interest.
B) it will have unlimited liquidity but will earn a relatively low rate of interest.
C) it will have limited liquidity but will earn a high rate of interest.
D) it will have limited liquidity but will earn a low rate of interest.

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