Liquidity Risk Is Defined as the Risk of

question 112

Multiple Choice

Liquidity risk is defined as the risk of

• A) having to trade a security in a broad market.
• B) not being able to sell an investment conveniently and at a reasonable price.
• C) having inflation erode the purchasing power of your investment.
• D) having declining price levels affect the reinvestment rate of your current income stream.

---

Definitions:

Millennials

A generational cohort following Generation X, typically defined as people born from the early 1980s to the late 1990s or early 2000s, characterized by their familiarity with technology, media, and diverse values.

Globalization

The process of interaction and integration among people, companies, and governments worldwide, driven by international trade, investment, and facilitated by information technology.

Social Media

Digital platforms and websites that enable users to create, share content or participate in social networking.

Digital Natives

Individuals born or brought up during the age of digital technology, therefore are familiar with computers and the internet from an early age.