The level of a firm's investment in marketable securities is dictated by its:
A)liquidity requirements.
B)accuracy of cash requirement needs.
C)accuracy of cash requirement needs and level of returns.
D)liquidity requirements and accuracy of cash requirement needs.

Question

Quizplus · Accepted Answer

The level of a firm's investment in marketable securities is determined by its liquidity requirements and accuracy of cash requirement needs. The firm should hold sufficient marketable securities to meet short-term cash requirements while also ensuring that it can earn a decent return on these investments.

The Level of a Firm's Investment in Marketable Securities Is