Answer:
The correct answer is letter "A": the available-for-sale approach.
Explanation:
The Available-for-Sale Securities are debt or equity securities held indefinitely. Investors who purchase securities available-for-sale do not retain them until they mature. They have not managed actively.
Available-for-sale securities can be used for liability purposes or to sell to manage interest rate exposure, free-payment risk, and liquidity needs. They may represent a temporary investment in another business that gives shareholders a higher income.
A disadvantage of available-for-sale securities is that firms can sell them with net unrealized gains that could be losses as well.
