Which of the Following Are Commonly Thought to Be Good

question 42

Multiple Choice

Which of the following are commonly thought to be good general investment guidelines?I) Don't try to outguess the market, buying and holding generally pays off.II) Diversify investments to spread risk.III) Investments should be highly concentrated in your company's stock.IV) 401K money is best placed in money market accounts because risk is very low.V) Investments should be allocated to stocks, bonds, and money-market funds.

• A) I, III, and IV
• B) I, II, and V
• C) II, IV, and V
• D) III, IV, and V
• E) I, II, IV, and V

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Definitions:

Average Daily Float

Indicates the average amount of un-cleared checks or unprocessed transactions in a company's bank account over a certain period, impacting the available balance.

Cheques

A method of payment that allows an individual to instruct their bank to pay a specific amount from their account to another party.

Daily Interest Rate

This is the interest rate applied to a loan or investment for a single day, often used in calculating accrued interest over a period.

Collection Float

The time difference between when a check is deposited and when the funds are available in the account, affecting the business’s cash flow.