Which of the Following Measures How Quickly an Investor Has

question 6

Multiple Choice

Which of the following measures how quickly an investor has access to his/her invested funds, if they are needed?

• A) risk
• B) tax consequences
• C) yield
• D) liquidity

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Definitions:

Demand

Demand refers to the quantity of a good or service that consumers are willing and able to purchase at various prices during a given time period.

Indifference Curves

Graphs used in economics to show combinations of two goods that provide equal satisfaction and utility to a consumer.

Budget Line

A graphical representation of all possible combinations of two goods which can be purchased with a given budget at fixed prices.

Utility Function

A utility function is a mathematical representation in economics that depicts an individual's preference ranking over a set of goods or outcomes, showing the level of satisfaction or utility derived from them.