Specific Dynamics,Inc.,decides to keep $400 million in short-term securities and $2 million in cash.They have about $1,000 million in total assets.What kind of strategy is Specific Dynamics most likely following:

Question

Quizplus · Accepted Answer

Specific Dynamics is likely following a medium to high liquidity strategy, as they are keeping a significant portion of their assets ($402 million out of $1000 million) in highly liquid forms (cash and short-term securities). This indicates a preference for having assets readily convertible to cash without significant loss, which is characteristic of medium to high liquidity strategies.