Which of the following is not a reason to invest excess cash in temporary invest

Question

Which of the following is not a reason to invest excess cash in temporary investments? Answer a)
earn interest revenue b)
influence the operations of another company c)
receive dividends d)
realize gains from the increase in market value of the securities Which of the following is not a reason to invest excess cash in temporary investments? Which of the following is not a reason to invest excess cash in temporary investments? earn interest revenue influence the operations of another company receive dividends realize gains from the increase in market value of the securities a)
earn interest revenue b)
influence the operations of another company c)
receive dividends d)
realize gains from the increase in market value of the securities

Explanation / Answer

B is the answer

investment designed to be held for a short period of time, typically a year or less. Some examples of temporary investments are money market mutual funds, money market deposit accounts, NOW checking accounts, Treasury bills, and short-term CDs.
Investors shifting money into such investments may have sold stocks, bonds, or mutual funds, and are keeping their assets liquid while they decide which investments to buy next. They also may be fearful that securities prices are about to fall, and they want to keep their assets in temporary investments to sidestep such a downdraft. While their money is in temporary investments, it continues to earn interest at prevailing market interest rates

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