A firm\'s excess cash balance during a particular month could be best deployed i

Question

A firm's excess cash balance during a particular month could be best deployed if it were
a) financed with short term investiments b) financed with long term investiments c) invested in short term investiments d) invested in long term investiments A firm's excess cash balance during a particular month could be best deployed if it were
a) financed with short term investiments b) financed with long term investiments c) invested in short term investiments d) invested in long term investiments
a) financed with short term investiments b) financed with long term investiments c) invested in short term investiments d) invested in long term investiments

Explanation / Answer

The answer is:

c) invested in short term investiments

By doing this, it will allow the company to earn some interest on the excess funds for the month while still keeping it avaialbe to help pay debt in future months.

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