Which of the Following Short-Term Securities Would a Firm Invest

question 35

Multiple Choice

Which of the following short-term securities would a firm invest in if they wanted to invest cash for a term of only a few days?

• A)Treasury bills
• B)repurchase agreements
• C)banker's acceptances
• D)commercial paper
• E)term deposits

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Definitions:

CESA Contribution

Funds put into a Coverdell Education Savings Account (CESA) to finance a beneficiary's educational expenses.

AGI

Adjusted Gross Income is the gross income of an individual or entity minus specific deductions, used to calculate taxable income on U.S. federal income taxes.

SIMPLE Plan

A retirement savings plan available for small businesses and self-employed individuals, offering a simplified way to save for retirement.

Salary

A fixed regular payment, typically monthly or biweekly, made by an employer to an employee, especially a professional or white-collar worker.