Which of the Following Is an Example of Cash and Cash

question 5

Multiple Choice

Which of the following is an example of cash and cash equivalents?

• A)cash on hand and in demand deposits (such as bank deposits)
• B)highly liquid investments
• C)all are examples of cash and cash equivalents
• D)short-term borrowings that are subject to an insignificant risk of change in value

---

Definitions:

Production Possibilities Curve

A graph that shows the maximum possible output combinations of two goods or services an economy can achieve when all resources are fully and efficiently utilized.

Bowed Outward

Refers to the shape of a production possibility frontier that shows increasing opportunity costs as production shifts between two goods.

Absolute Advantage

A situation in which a nation, as the result of its previous experience and/or natural endowments, can produce more of a good (with the same amount of resources) than another nation can.

Comparative Advantage

The ability of a country or firm to produce a particular good or service at a lower opportunity cost than its trading partners, leading to specialized production and trade benefits.