A Primary Purpose of Restricting the Investment of Idle Cash

question 26

Multiple Choice

A primary purpose of restricting the investment of idle cash balances to money market instruments is to:

• A) obtain government guarantees on the investment.
• B) minimize transaction costs.
• C) minimize interest-rate risk.
• D)have a continual market for selling the investments.

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Definitions:

Hypoxia

A condition in which the body or a region of the body is deprived of adequate oxygen supply at the tissue level, potentially leading to various health complications.

Cyanosis

A bluish or purplish discoloration of the skin and mucous membranes due to insufficient oxygen in the blood.

Blood Pressure

The pressure exerted by circulating blood upon the walls of blood vessels, usually measured using a sphygmomanometer.

Intercostal Space

The anatomical area located between two ribs, which contains muscles and nerves and plays a key role in the mechanics of breathing.