What Are Short-Term Investments That Are Easily Converted Back to Cash

question 36

Multiple Choice

What are short-term investments that are easily converted back to cash and are used by financial managers to achieve higher returns than those offered by chequing accounts?

• A) corporate securities
• B) marketable securities
• C) management vehicles
• D) corporate equities

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Definitions:

Y-intercept

The point where a line crosses the y-axis on a graph, representing the value of the dependent variable when the independent variable is zero.

Simple Linear Regression

A statistical method that models the relationship between a dependent variable and one independent variable by fitting a linear equation to the observed data.

Response Variable

The variable in a study or experiment that is assumed to depend on or be affected by changes in another variable (often called the independent variable).

Explanatory Variable

A variable in a statistical model that is believed to cause or explain changes in the response variable.