When a corporation designs an investment strategy for investing temporary excess cash balances in marketable securities,it must consider a variety of factors.Which of the following is the most important?
A) maintaining the safety of principal
B) maintaining the greatest float
C) achieving the highest yield
D) illiquidity

Question

Quizplus · Accepted Answer

Maintaining the safety of principal is the most important factor to consider when investing temporary excess cash balances in marketable securities as it ensures that the money is not lost and can be accessed when needed. Achieving a high yield or maintaining the greatest float may be desirable, but should not come at the expense of risking the principal. Illiquidity should also be avoided as it may impact the ability to access funds when needed.

When a Corporation Designs an Investment Strategy for Investing Temporary