All Other Characteristics Being Equal, Securities with ____ Liquidity Would

question 40

Multiple Choice

All other characteristics being equal, securities with ____ liquidity would have to offer a ____ yield to be preferred.

• A) lower; higher
• B) higher; higher
• C) lower; lower
• D) none of the above

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Definitions:

Total Revenue

The total amount of money received by a company from sales of its goods or services, calculated as the quantity sold multiplied by the selling price.

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, indicating the surplus generated beyond the normal profit expected in a competitive market.

Total Costs

The complete sum of expenses incurred in the production of goods or services, including both fixed and variable costs.

Perfectly Competitive

A market structure where there are many buyers and sellers, products are identical, and there is free entry and exit in the market.