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    Short-term investment

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    Which security would you choose for a short-term investment? How does that security assist a company in meeting its cash management goals?

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    Short term investment is an issue of managing working capital in an effective manner. There are various options for short term investments like money market mutual funds, short term deposits, and money market securities. Another one is a bankers acceptance (BA) is a time draft drawn on a bank, typically to finance an international transaction where one party is unwilling to offer their goods or services on credit. A banker's acceptance is issued by the customer and is an order for the bank to pay a provider of goods a certain amount of money at a predetermined date. Once the bank accepts this order, they are ...

    Solution Summary

    Response discusses the security suitable for short-term investment.