An Investor with High Liquidity Needs and a Short Time

question 49

Multiple Choice

An investor with high liquidity needs and a short time horizon should have a relatively high allocation to:

• A) real estate.
• B) bonds.
• C) money market securities.
• D) low beta stocks.

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Definitions:

Public Bureaucracies

Government agencies and departments responsible for implementing laws and policies, often characterized by defined procedures and hierarchical structures.

Competitive Market Pressures

The forces exerted by competitors in a market that compel businesses to improve quality, service, and efficiency to maintain or enhance their market position.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they can be used by everyone and one person's use does not reduce availability to others, such as public parks and national defense.

Fiscal Policy

Changes in government spending and tax collections designed to achieve full employment, price stability, and economic growth; also called discretionary fiscal policy.