A Firm That Wishes to Minimize Risk When Investing Idle

question 144

Multiple Choice

A firm that wishes to minimize risk when investing idle cash would be least likely to buy:

• A) commercial paper.
• B) long-term corporate bonds.
• C) negotiable certificates of deposit.
• D) Treasury bills of the Canadian government.

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Definitions:

Relativistic

Relating to the theory which states that space and time are relative and all motion is relative to a reference frame, rather than being absolute.

Dualistic

Pertaining to or involving a dichotomy or contrast between two concepts or entities.

Stereotypes

Oversimplified and widely held fixed images or ideas of particular types of people or things, which often lead to prejudices and unfair judgments.

Flexibility

The quality of being adaptable or variable in response to changing conditions or circumstances.