Which of the Following Refers to the Opportunity to Withdraw

question 40

Multiple Choice

Which of the following refers to the opportunity to withdraw money on short notice without incurring a loss in value?

• A) Compounding
• B) Liquidity
• C) Minimum deposit
• D) Rate of return
• E) Safety

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Definitions:

Contractual Capacity

The threshold mental capacity required by law for a party who enters into a contract to be bound by that contract.

Contract

A contract is a legally binding agreement between two or more parties, enforceable by law.

Consideration

The value (such as money, service, or goods) exchanged between parties in a contract which makes the agreement legally binding.

Bilateral Contract

An agreement involving two parties where each promises to perform an act in exchange for the other's act.