A Primary Purpose of Restricting the Investment of Idle Cash

question 10

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) carry a minimal amount of interest-rate risk.
• D) have a continual market for selling the investment.

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Definitions:

Source Inspection

Controlling or monitoring at the point of production or purchase— at the source.

User-Based Definition

A user-based definition refers to the explanation or interpretation of a concept, term, or system based on the perspective or use case of the end-user.