If You Have $10 000 That You Do Not Expect

question 70

Multiple Choice

If you have $10 000 that you do not expect to need for expenses in the next few years and you wish to put it somewhere so that it will earn a return,which of the following financial institutions would be the best option?

• A)A bank
• B)A mutual fund company
• C)A credit union
• D)Any of the above

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Definitions:

Accounts Payable

Liabilities or amounts owed by a business to its suppliers or creditors for goods and services received but not yet paid for.

Direct Materials Budget

A financial plan that estimates the raw materials required for production and the associated costs for a specific period.

Cash Payments

Transactions in which money is paid out or disbursed by a business, typically related to operational expenses, purchases, or other financial obligations.

Raw Materials Inventory

The total cost of all components and materials a company holds that are yet to be used in the manufacturing process.