Liquidity

question 80

Multiple Choice

Liquidity

• A)is the best available measure of the riskiness of an asset.
• B)is a characteristic of money, and of no other asset.
• C)is the ease with which an asset can be exchanged for money.
• D)was declining for many financial assets during the 1990s.

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Definitions:

Target Costing

A pricing method where the selling price is set first, and then the target cost for producing the product is determined by subtracting a desired profit margin.

Desired Return

The specific profit that an investor aims to achieve from an investment.

Investment

The allocation of resources, such as time, money, or effort, in something with the expectation of receiving a future return or profit.

Traceable Fixed Expense

Fixed costs that can be directly linked to a specific business center or segment.