Marketable securities typically are -
A Highly liquid and easily sold if necessary
B Selected to provide liquidity with low risk (and consequently low return).
C Low risk, low return investments
D Selected for short-term maturity and high credit ratings
E All of the above.
Marketable securities are a short term highly liquid investments which are readily convertible into cash
These are low risk investments
Hence, the answer is E.All of the above
Marketable securities typically are - A Highly liquid and easily sold if necessary B Selected to...
9. Which one of these statements is correct? A) Total revenues generally decrease if both the quantity sold and the price per unit increase when credit is granted. B) A firm's cash cycle generally decreases when it switches from a cash to a credit policy, all else equal. C) A firm may have to increase its long-term borrowing if it decides to grant credit to its customers D) Most customers will forgo the discount and pay at the end of...
24 Short-term securities possess all of the following characteristic and/or advantages except a. low interest rate or maturity risk b high yield or investment return c low default risk d high marketability or liquidity 25 The conditions under which a firm sells its goods and services for cash or credit a. collection policy b terms of sale c terms of endearment d credit contract
Investment securities portfolio help to offset credit risk exposure means: a. High-quality securities can be purchased and held to balance out the risk from loans. b. Their price can never go down. c. They will never default. d. They are protected against interest rates change. 13. Function(s) of a bank's security portfolio is (are) to: a. Increase tax exposure. b. Increase credit risk exposure. c. Provide a back-up source of liquidity. d. All of the above. 14. When interest rates...
P 6-24 Required Answer the following multiple-choice questions: a. A company's current ratio is 2.2 to 1 and quick (acid-test) ratio is 1.0 to 1 at the beginning of the year. At the end of the year, the company has a current ratio of 2.5 to 1 and a quick ratio of 0.8 to 1. Which of the following could help explain the divergence in the ratios from the beginning to the end of the year? (continued R6-Liquidity of Short...
gy.com/assigny 2332078316/assessment Question 10 Short-term investments 0 а 0 b are investments in debt securities or equity securities in which the investor holds less than 50 percent of the voting stock and that the investor plans to sell in the very near future are debt and equity Securities that the investor expects to hold for more than a year are investments in debt and equity securities that are highly liquid and that the investor intends to convert to cash within...
22) A banker's acceptance is A) a liability of the importer and the importer's hank B) for greater than one year maturity. C) a method to help importers evaluate the creditwon D) an add-on instrument. E) a time draft drawn on the exporter's bank evaluate the creditworthiness of exporters. 24) In a Treasury auction, preferential bidding sta A) short sale committed bidders. C) competitive bidders. referential bidding status is granted to B) commercial bank bidders. D) noncompetitive bidders. 25) Which...
Need help in analysis the below Debt Investment paragraph. DEBT INVESTMENTS We consider all highly liquid debt investments with original maturities from the date of purchase of three months or less as cash equivalents. Cash equivalents can include investments such as corporate debt, financial institution instruments, government debt,and reverse repurchase agreements.Marketable debt investments are generally designated as trading assets when a market risk is economically hedged at inception with a related derivative instrument, or when the marketable debt investment itself...
the low Managing in Financial Markets Money Market Portfolio Dilemma As the treasurer of a corporation, one of your jobs is to maintain investments in liquid securities such as Treasury securities and commercial paper. Your goal i to earn as high a return as possible but without takin much of a risk a. The yield curve is currently upward sloping, such that 10-year Treasury bonds have an annualized yield 3 percentage points above the annualized yield of three-month T-bills. Should...
Which of the following would improve Liquidity: ( a ) Factoring a business’s Accounts Receivable ( b ) Using surplus cash to buy Land and Buildings ( c ) Paying all Accounts Payable sooner ( d ) Increasing employees wages ( e ) All of the above 2 If the Net Profit Ratio decreases, which of the following will NOT improve the ratio: ( a ) Increasing the sales price ( b ) Finding a cheaper supplier of your product...
Selected amounts from Reingold Company's balance sheet from the beginning of the year follow: Cash Marketable Securities Accounts receivable. net Inventory Prepaid expenses Plant and equipment, net Accounts payable Accrued liabilities Notes due within one year Bonds payable in five years $ 57,000 $ 5,500 $ 318,800 $ 426,200 $ 5,400 $ 820,000 $ 176,600 $ 48,300 $ 74,000 $ 127,000 During the year, the company completed the following transactions X Purchased inventory on account, $40.250. a. Declared a cash...