Which of the following short-term securities would a firm invest in if they wanted to invest cash for a term of only a few days?
A) Treasury bills
B) repurchase agreements
C) banker's acceptances
D) commercial paper

Question

Quizplus · Accepted Answer

Repurchase agreements (repos) are ideal for very short-term investments, often just a few days, as they involve the sale of securities with an agreement to repurchase them at a higher price at a later date. This makes them suitable for firms looking to invest cash for a short period.

Which of the Following Short-Term Securities Would a Firm Invest