A company concerned about the liquidity of its near-cash securities should invest in U.S.Treasury bills because the secondary market for U.S.Treasury bills is excellent.

Question

Quizplus · Accepted Answer

U.S. Treasury bills are highly liquid and have an excellent secondary market, making them a good option for companies concerned about the liquidity of their near-cash securities. This means they can easily be bought and sold on the open market, allowing the company to quickly access cash if needed.

A Company Concerned About the Liquidity of Its Near-Cash Securities