If You Need Access to Your Funds in Two Years

question 127

Multiple Choice

If you need access to your funds in two years or less, which of the following investments would be least appropriate?

• A) Cash
• B) Certificates of deposit
• C) Short-term government bonds
• D) Highly rated corporate bonds
• E) Stocks and mutual funds

Identify different types of tests (achievement, aptitude) and their focuses.

Understand the concept and calculation of float in financial management.

Recognize the different types of float and their impact on a company's cash management.

Calculate the cost and benefit analysis of adopting lockbox services.

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Definitions:

Historical Price Patterns

The analysis of past price movements to forecast future price behavior in financial markets.

Market Efficiency

A market characteristic where prices fully reflect all available information, making it impossible to consistently achieve higher returns.

Arbitrage Opportunities

The chance to buy an asset at a low price in one market and sell it at a higher price in another, exploiting the price difference for profit.

Real Asset Markets

Markets that deal with physical assets like real estate, commodities, and natural resources, as opposed to financial assets.