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:

Tax Liability

The sum total of taxes that an individual, corporation, or other entity is required to pay to a government body.

Single Person

An individual who is unmarried or legally separated from a spouse, affecting their tax filing status and benefits.

Taxable Income

The portion of an individual's or corporation's income used to determine how much tax is owed to the federal government or other taxing authorities.

Tax Liability

The total amount of tax that an individual or business is legally obligated to pay to a tax authority based on earnings or profit.