Which of the Following Would Be Considered to Be the Most

question 135

Multiple Choice

Which of the following would be considered to be the most liquid?

• A) checkable deposits
• B) small time deposits
• C) money market mutual funds
• D) savings deposits

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Definitions:

Additional Paid-in Capital

The amount of money investors pay above the par value of a stock.

Retirement of Shares

The process by which a company buys back its own shares from the marketplace, reducing the amount of outstanding shares.

Stockholders' Equity

The residual interest in the assets of a corporation that remains after deducting its liabilities; represents ownership equity in a firm.

Par Preferred Stock

A type of preferred stock that has a specified face value (par value) which determines the dividend calculation and has priority over common stock in dividend payments and upon liquidation.