Which of the Following Is a Drawback of a Money

question 5

Multiple Choice

Which of the following is a drawback of a money market fund from an investment company?

• A)Penalty if money is withdrawn early
• B)Lower rate of interest if redeemed within the first five years
• C)Lacks liquidity
• D)Not covered by FDIC insurance
• E)Not usually allowed to write checks

Understand and apply discounts and markups in pricing strategies.

Calculate depreciation values and understand its impact on asset valuation.

Understand the concept of equity and debt financing in a business context.

Apply concepts of percentage change to demographic and economic indicators.

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Definitions:

2008 Recession

A significant decline in economic activity spread across the economy, lasting more than a few months, which was prominently initiated in 2008 due to the collapse of the housing market and financial sector.

Economic Downturn

A period of declining economic performance across an economy, characterized by reduced GDP, employment, and spending.

Adjustable Rate Mortgages

Home loans with interest rates that can change over time, often linked to a specific index or benchmark.

Foreclosure Rates

The percentage of properties undergoing the legal process by which a lender attempts to recover the balance of a loan from a borrower who has stopped making payments.