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Management · Q975

Financial Management

Graduate and Post Graduate · Management · question 975

Q975

Financial security with low degree risk and investment held by businesses is classified as

A.
treasury bills
B.
commercial paper
C.
negotiable certificate of deposit
D.
money market mutual funds
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
Financial security with low degree risk and investment held by businesses is classified as money market mutual funds. A money market mutual fund (MMF) is a type of mutual fund that invests in high-quality, short-term debt instruments, cash, and cash equivalents.