What does the information demonstrate about Alex’s investments Brainly?

Which type of investment would be an example of an investment at point A?

A savings account, since the point indicates low risk and low returns. Explanation: The most favored choice for investing or excess funds is a savings bank account. These accounts are often known as the safest way to keep the emergency fund secure.

What are some characteristics of short term investments?

Some of the desired traits in short-term investments are safety, liquidity, and returns, and money market accounts have these characteristics.

What is the definition of liquidity investing quizlet?

the practice of putting money into more than one kind of investment at a time. liquidity. the ability to quickly convert to cash.

Which asset is most liquid?

Cash on hand is the most liquid type of asset, followed by funds you can withdraw from your bank accounts.

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What is the most liquid investment?

Cash. What is the most liquid asset? It’s cash. Having cash on hand is by far the most liquid investment.

What is investment example?

An investment can refer to any mechanism used for generating future income. This includes the purchase of bonds, stocks, or real estate property, among other examples. Additionally, purchasing a property that can be used to produce goods can be considered an investment.

What are the 4 types of investments?

There are four main investment types, or asset classes, that you can choose from, each with distinct characteristics, risks and benefits.

  • Growth investments. …
  • Shares. …
  • Property. …
  • Defensive investments. …
  • Cash. …
  • Fixed interest.

What is investment and its types?

There are various types of investments: stocks, bonds, mutual funds, index funds, exchange-traded funds (ETFs) and options. See which ones might work for you. … It’s important to weigh types of investments carefully. Investments are generally bucketed into three major categories: stocks, bonds and cash equivalents.

What are examples of short term investments?

Here are a few of the best short-term investments to consider that still offer you some return.

  1. Savings accounts. …
  2. Short-term corporate bond funds. …
  3. Money market accounts. …
  4. Cash management accounts. …
  5. Short-term U.S. government bond funds. …
  6. Certificates of deposit. …
  7. Treasurys. …
  8. Money market mutual funds.

Which two factors have the greatest influence on risk for an investment?

Which two factors have the greatest influence on risk for an investment? The duration of the investment. The history of the investment.

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Which of the following investments generally pay the highest return?

Key Takeaways

  • The stock market has long been considered the source of the highest historical returns.
  • Higher returns come with higher risk. Stock prices are more volatile than bond prices.
  • Stocks are less reliable in shorter time periods.

What does the information demonstrate about Gale’s investments?

What does the information demonstrate about Gale’s investments? If she had purchased only the stock and had not diversified her investments, she would have lost money. the commodity’s price will go up after purchase. What is the definition of liquidity?

What is the purpose of liquidity quizlet?

What is liquidity? How quickly and easily an asset can be converted into cash. When talking about the time value of money, this will result in your largest return. What is simple interest?

How easily an investment can be exchange for cash is known as?

Liquidity refers to how easily an investment can be sold for cash. T-bills and stocks are considered to be highly liquid since they can usually be sold at any time at the prevailing market price.