Which of the Following Refers to a Reason Why It

question 173

Multiple Choice

Which of the following refers to a reason why it is easier to buy than to sell?

• A) Depending on the asset, it can sometimes take a long time to find a buyer.
• B) The sales process gets complicated because you can never be sure how much you can get others to pay for the things you own.
• C) Marketability of assets is tied to risk.
• D) All of these answer choices are correct.

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Definitions:

Compounding Interval

The frequency with which interest is added to the principal balance of an investment.

Monthly Compounded

Monthly compounded refers to the process of calculating interest on a principal amount where the interest is added to the principal at the end of each month, thereby earning interest on interest in subsequent months.

Effective Rate

The interest rate on a loan or investment, adjusted for the effect of compounding.

Interest Rate

The rate at which a borrower is charged interest for the money borrowed from a lender.