(Topic 8) A short-term bank line with $20 million of unused capacity and an investment in an overnight money market fund are both forms of which liquidity requirement?

The correct answer is A. Precautionary. See the full explanation below for the reasoning.

Question

(Topic 8)

A short-term bank line with $20 million of unused capacity and an investment in an overnight money market fund are both forms of which liquidity requirement?

Options

APrecautionary
BStrategic
COpportunity
DTransaction

How the community answered

(39 responses)

A
74% (29)
B
15% (6)
C
3% (1)
D
8% (3)

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