Because These Securities Are More Liquid and Generally Have Smaller

question 82

Multiple Choice

Because these securities are more liquid and generally have smaller price fluctuations,corporations and banks use the ________ securities to earn interest on temporary surplus funds.

• A)money market
• B)capital market
• C)bond market
• D)stock market

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Definitions:

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return, used in evaluating investment opportunities.

Lease Receivable

An amount due to the lessor under a lease agreement, representing the lessor's right to receive payments from the lessee.

Manufacturer/Dealer Lessor

A party that leases out the goods they manufacture or deal in, providing customers with access to assets without transferring ownership.

Leased Receivable

An asset account that represents amounts owed by lessees to the owner of leased property, under the terms of lease agreements.