All of the Following Are True with Regard to the Demand

question 32

Multiple Choice

All of the following are true with regard to the demand for financial advisers, except

• A) many people lack an understanding of personal finance.
• B) many people prefer to rely on advisers rather than making their own decision.
• C) many people are just not interested in making their own financial decisions.
• D) only financial advisers can purchase mutual funds for a person's 401(k).

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Definitions:

Unrealized Holding Gain

The increase in value of an asset that is still held by an entity and has not been sold for a profit.

Trading Security

A financial asset that a company holds primarily for the purpose of selling it in the short term to profit from price changes.

Available-For-Sale Security

A financial asset that is neither classified as held-to-maturity nor held for trading, and the investor intends to sell if needed before its maturity or holding period ends.

Perfectly Matched Hedge

A hedging strategy that entirely eliminates the risk of a particular position by taking an offsetting position in the market.