The Most Liquid Security,and the One That Has the Least

question 6

Multiple Choice

The most liquid security,and the one that has the least default risk in the world,is the:

• A)91-day Treasury bill
• B)3-month CD
• C)loan participations
• D)commercial paper

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Definitions:

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or the business cycle, whichever is longer.

Current Assets

Short-term assets that are expected to be converted into cash, sold, or consumed within one year or within the business's operating cycle, whichever is longer.

Operating Cycle

The average period of time between the purchase of goods or services and the receipt of cash from sales, typical in the context of a company's day-to-day operations.