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Management · Q235

Financial Management

Graduate and Post Graduate · Management · question 235

Q235

Which of the following short term securities is inappropriate for an individual, desiring funds for financial emergencies?

A.
treasury bills
B.
certificates of deposit
C.
financial futures
Answer
D.
savings accounts

Answer: Option C

Solution

Answer: Option C
Solution:
Financial futures short term securities is inappropriate for an individual, desiring funds for financial emergencies. Futures contract to buy or sell a specific financial instrument (such as treasury bills, certificates of deposit, or foreign currencies) at a specific future date and at a specified price. The market value of these contracts generally moves in a direction opposite to that of the interest rates.