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Management · Q313

Financial Management

Graduate and Post Graduate · Management · question 313

Q313

Securities with less predictable prices and have longer maturity time is considered as

A.
cash equivalents
B.
long-term investments
C.
inventories
D.
short-term investments
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
Securities with less predictable prices and have longer maturity time is considered as short-term investments. Short-term investments are designed to provide considerable returns in a short period of time, which could be a few months or even a year.