Savers View the Liquidity of Financial Assets as a Benefit

question 9

Multiple Choice

Savers view the liquidity of financial assets as a benefit because

• A)they want to be able to easily exchange their assets for something else.
• B)the more liquid an asset is, the higher its rate of return, all else being constant.
• C)liquid assets incur fewer tax liabilities than do illiquid assets.
• D)liquid assets are a good means of saving for retirement.

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Definitions:

Molecules

Molecules are two or more atoms bonded together, forming the smallest fundamental units of a chemical compound that can take part in a chemical reaction.

Biochemical Reactions

Chemical processes that occur within living organisms to support life, including metabolism, respiration, and photosynthesis.

Cooler Temperatures

Conditions or environments characterized by lower thermal energy, often leading to decreased kinetic energy of atoms or molecules.

Grow More Slowly

A process or condition of developing or increasing in size or scale at a pace that is less rapid than expected or typical.