In which of the following cases would direct use of the money markets be appropr
ID: 2749845 • Letter: I
Question
In which of the following cases would direct use of the money markets be appropriate?
A. A firm has surplus cash on hand that it will not need for approximately six months.
B. The federal Government needs $5 billion to build a bridge.
C. Mellissa the investor has $5,000 in extra cash she would likr to invest for 10 years.
D. A commercial bank has an immediate need for additional cash to make a short term loan.
Both A and D of the above are correct.
A. A firm has surplus cash on hand that it will not need for approximately six months.
B. The federal Government needs $5 billion to build a bridge.
C. Mellissa the investor has $5,000 in extra cash she would likr to invest for 10 years.
D. A commercial bank has an immediate need for additional cash to make a short term loan.
Both A and D of the above are correct.
Explanation / Answer
D. A commercial bank has an immediate need for additional cash to make a short term loan.
since money market is preferred for short term