Monitoring liquidity does not include tracking
A)bank account balances.
B)money market securities.
C)certificates of deposit.
D)bond mutual funds.

Question

Quizplus · Accepted Answer

Monitoring liquidity typically pertains to tracking the availability of funds for immediate use. Bond mutual funds, on the other hand, are typically held for longer-term investment purposes and are not expected to be liquid in the short term. Therefore, tracking bond mutual funds is not relevant when monitoring liquidity. Bank account balances, money market securities, and certificates of deposit, however, are all typically considered when monitoring liquidity as they are all sources of immediate funds.

Monitoring Liquidity Does Not Include Tracking