The appropriate split of liquid balances between cash and marketable securities depends on all but
A)interest rates
B)costs of buying and selling securities
C)the variability of cash flows
D)the existence of foreign exchange risk

Question

Quizplus · Accepted Answer

The appropriate split of liquid balances between cash and marketable securities depends on interest rates, costs of buying and selling securities, and the variability of cash flows. However, the existence of foreign exchange risk is not relevant to this decision as it is a separate consideration for companies conducting business in multiple currencies.

The Appropriate Split of Liquid Balances Between Cash and Marketable