Which of the Following Statement Completions Is CORRECT? If the Yield

question 14

Multiple Choice

Which of the following statement completions is CORRECT? If the yield curve is upward sloping,then the marketable securities held in a firm's portfolio,assumed to be held for emergencies,should

• A) consist mainly of long-term securities because they pay higher rates.
• B) consist mainly of short-term securities because they pay higher rates.
• C) consist mainly of U.S.Treasury securities to minimize interest rate risk.
• D) consist mainly of short-term securities to minimize interest rate risk.
• E) be balanced between long- and short-term securities to minimize the adverse effects of either an upward or a downward trend in interest rates.

---

Definitions:

Entertainment Allowance

A budget or fund allocated by organizations for hosting business clients or for employee leisure activities.

Providing Information

The act of supplying relevant and helpful details about a product or service to aid in decision-making.

Handle Customer Complaints

The process of addressing grievances raised by customers regarding products or services to ensure satisfaction.

Return Damaged Merchandise

The process of sending back products that are defective or damaged upon receipt to the seller for a refund, replacement, or credit.