Generally the Higher the Risk Involved in an Activity, the ________

question 344

Multiple Choice

Generally the higher the risk involved in an activity, the ________ the rate of return expected by investors.

• A) higher
• B) lower
• C) more stable
• D) less frequent

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Definitions:

M2

A gauge of currency circulation that covers physical money, funds in checking accounts, and assets easily turned into cash.

FDIC

The Federal Deposit Insurance Corporation, a U.S. government agency that insures deposits at banks and thrifts to maintain public confidence and encourage stability in the financial system.

Time Deposits

Bank deposits that cannot be withdrawn for a certain term or period of time without incurring a penalty.

Large Denomination

Refers to currency or financial instruments issued in large amounts, often used for major transactions or investments.