Jasmine Started a Small Business Two Years Ago

Multiple Choice

Jasmine started a small business two years ago. Her business has now made some profit, and Jasmine notes that she has savings of a few thousand dollars in her bank account. She wants to invest this amount, but is doubtful because of the uncertainty of cash flows in her new business. Jasmine is concerned that she may need access to these funds on fairly short notice in the future. If she wants to get into the market for highly liquid securities, she should:

A) invest the funds in common stocks.
B) keep all of these funds in her checking account.
C) invest her excess cash into money market mutual funds.
D) use her excess cash to buy term deposits.