Short-Term Securities Are Safe to Keep Idle Cash Balance

question 17

Multiple Choice

Short-term securities are safe to keep idle cash balance.Choose from the following, one appropriate reason for this.

• A)low interest-rate risk
• B)high returns
• C)high net present value
• D)ease of receiving interest payments

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Definitions:

Strict Liability

A legal doctrine that holds a party responsible for their actions or products without the plaintiff having to prove negligence or fault.

Product Liability

The legal liability of manufacturers, sellers, and lessors of goods to consumers, users, and bystanders for injuries or damages that are caused by the goods.

Misrepresentation

The act of providing false or misleading information, often in a contractual context where one party deceives another.

Plaintiff

The person or party who initiates a lawsuit in court against another party, alleging wrongdoings that caused harm or loss.