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:

Fixed Costs

Expenses that do not change with the level of production or sales in the short term, such as rent, salaries, or insurance premiums.

Unitised

Refers to the conversion of a product or service into quantifiable units, typically for ease of calculation, tracking, or comparison.

Special Decisions

Decisions made in unique or non-recurring situations requiring specific analysis or responses.

Annual Operating Costs

The total expenses associated with the day-to-day functioning of a business or project over one year.