Conceptually, an FI's Trading Portfolio Can Be Differentiated from Its

question 47

Multiple Choice

Conceptually, an FI's trading portfolio can be differentiated from its investment portfolio by

• A)liquidity.
• B)time horizon.
• C)size of assets.
• D)effects of interest rate changes.
• E)liquidity and time horizon.

---

Definitions:

Opportunity Cost

The potential benefits an individual, investor, or business misses out on when choosing one alternative over another.

Opportunity Cost

The foregone benefit that would have been derived by an option not chosen.

Alternative Action

Potential different courses of action considered in a decision-making process.

Processed Further

A term used in cost accounting to describe materials or products that are subjected to additional operations or stages of processing beyond the initial production stage.