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21) Marketable securities short-term, interest-earning, money market instruments that can

Question : 21) Marketable securities short-term, interest-earning, money market instruments that can : 1415284

 

21) Marketable securities are short-term, interest-earning, money market instruments that can easily be converted into cash.

22) Since Treasury bills are issued in bearer form, they are considered to be virtually risk-free.

23) The yields on Treasury bills are generally higher than those on any other marketable securities due to their virtually risk-free nature.

24) Federal agency issues are obligations of the U.S. Treasury and are readily accepted as low-risk securities.

25) Commercial paper is a short-term loan issued by commercial banks that have variable yields based on size, maturity, and prevailing money market conditions.

26) A major decision confronting a business firm when purchasing marketable securities involves a trade-off between the opportunity to earn a return on idle funds during the holding period and the brokerage costs associated with the purchase and sale of marketable securities.

27) Treasury notes generate lower returns than U.S. Treasury bills.

28) Most federal agency issues have short maturities and offer slightly higher yields than U.S. Treasury issues having similar maturities.

29) The yields on negotiable certificates of deposit are typically above those on U.S. Treasury issues and comparable to the yields on commercial paper with similar maturities.

30) A banker's acceptance is a low-risk security because at least two, and sometimes three, parties may be liable for its payment at maturity.

 

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