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Excess cash parked in short-term investments is held in:
AManaged securities
BMarketable securities
CMortgage securities
DMunicipal securities
Answer & Solution
Correct answer: B. Marketable securities
1. The aim is liquidity that can be tapped.
2. They are cash alternatives.
3. They are marketable securities.
_Source: OpenStax Principles of Finance 2e, Chapter 19, The Importance of Working Capital._
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