In Which of the Following Types of Investment Is the Most

question 106

Multiple Choice

In which of the following types of investment is the most liquidity risk?

• A)Common stock
• B)Corporate bonds
• C)Treasury bonds
• D)Land
• E)Mutual fund shares

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Definitions:

Maker

In finance, the party that creates or issues a promissory note.

Petty Cash Fund

A small amount of cash kept on hand for minor or incidental expenses.

Cash Over and Short

An account used in cash management to record discrepancies between actual cash received and expected amounts, indicating either excess cash or a shortage.

Miscellaneous Revenue

Miscellaneous Revenue represents income received by a business from sources not related to its primary operations, such as sales of assets, interest, or one-time events.