Which of the Following Investments Typically Has the Most Risk

question 137

Multiple Choice

Which of the following investments typically has the most risk?

• A) Government bonds
• B) Cash
• C) Cash equivalents
• D) Certificates of deposit
• E) Stocks

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Definitions:

Merchandise Inventory

Items held for sale in the ordinary course of business, often quantified for accounting and operational purposes.

Monthly Depreciation

The portion of a tangible asset's cost that is allocated as an expense over a month, reflecting the asset's usage and wear and tear.

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period, typically used for managing liquidity.

Sales Budget

An estimate of expected sales revenue for a particular period, forming the basis for setting other budgets in the company.