CFA Practice Question

There are 266 practice questions for this study session.

CFA Practice Question

Rank the sources of liquidity from strongest to weakest.

I. Equity issuance
II. Bank credit facilities
III. Operating cash flow
A. III, I and II
B. II, III and I
C. III, II and I
Explanation: Equity issuance may not be a reliable source of liquidity because an issuer may be private or market conditions may be poor.

User Contributed Comments 1

User Comment
tmeeker Can't you tap a bank loan overnight whereas funds from operation can take months with long cash conversion cycles?
You need to log in first to add your comment.