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

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Definitions:

Demand Schedule

A table that lists the quantity of a good or service demanded by consumers at various price levels.

Marginal Utility Data

Information that quantifies the added satisfaction a consumer gains from consuming one more unit of a good or service.

Prices

The amount of money required to purchase goods or services, set by supply and demand in a market.

Market Price

The present rate at which a service or asset is available for purchase or sale.