Financial security with low degree risk and investment held by businesses is classified as________________?
Correct answer: A. Money market mutual funds
- A. Money market mutual funds
- B. Commercial paper
- C. Negotiable certificate of deposit
- D. Treasury bills
Explanation
Money market mutual funds invest in short-term, high-quality instruments and therefore generally carry relatively low risk for business investors. Treasury bills and commercial paper are also low-risk instruments, but the wording points to the investment fund classification.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
About Business Finance
Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
Practise Business Finance
975 free Business Finance MCQs from Management Sciences, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Management Sciences questions like this
Management Sciences is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Business Finance questions
Document in a corporation which consists of amount of stock, name and addresses of directors is classified as_____________?
A price for equity is called______________?
Hewlett-Packard and Microsoft are examples of__________?
As free bonds issue for welfare by industrial agencies or pollution control agencies are classified as__________?
Risk of fall in income due to fall in interest rates in future is classified as__________?
If coupon rate is equal to going rate of interest, then bond will be sold________?