Which of the following short term securities is inappropriate for an individual, desiring funds for financial emergencies?

A treasury bills
B certificates of deposit
C financial futures
D savings accounts

Correct Answer: financial futures

Financial futures short term securities is inappropriate for an individual, desiring funds for financial emergencies. Futures contract to buy or sell a specific financial instrument (such as treasury bills, certificates of deposit, or foreign currencies) at a specific future date and at a specified price. The market value of these contracts generally moves in a direction opposite to that of the interest rates.
Bissoy MCQ
#Commerce #Financial Management

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