Marketable Securities Flashcards
1
Q
What are the reasons for holding cash and MS
A
transaction
precautionary
speculative
2
Q
What are the kinds of floats
A
collection
disbursement/payment
3
Q
What are the components of a float
A
mail
processing
clearing
4
Q
What are the characteristics of a marketable security?
A
ready market
safety of principal
5
Q
What the types of marketable securities
A
Treasury bills
treasury/coporate bonds
Negotiable certificate of deposits
commercial paper