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Which of the following short term securities is inappropriate for an...

This question belongs to Commerce Financial Management
Financial Management
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Which of the following short term securities is inappropriate for an individual, desiring funds for financial emergencies?

Answer & Solution
Correct Answer: Option C
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.
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