Keeping a Large Surplus of Cash and Investing It in Treasury

question 64

True/False

Keeping a large surplus of cash and investing it in Treasury bills will bring positive NPV to a firm.

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Definitions:

Intern

An individual, typically a student or recent graduate, undergoing supervised practical training in a professional setting.

Government Agencies

Bodies of the government responsible for the oversight and administration of specific functions, such as enforcement of laws, regulation of industries, and the provision of various services.

Insurance Companies

Organizations that provide a range of insurance policies to protect individuals or entities against potential financial losses.

Corporations

Legal entities that are separate and distinct from their owners, capable of owning property, entering into contracts, and being sued.