Which of the Following Are Reasons Why a Person May

question 45

Multiple Choice

Which of the following are reasons why a person may want to warehouse liquidity?
I. protect against total loss
II. ability to exploit future opportunities
III. capitalize on the high rates of return available on cash
IV. protect against the need to disturb the existing portfolio

• A) I and II only
• B) I, II and IV only
• C) II, III and IV only
• D) I, II, III and IV

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Definitions:

Negligent Performance

Failure to act with the competence or care that is expected in a given professional role, leading to harm or damage.

Duty of Care

Duty of care is a legal obligation that requires individuals or organizations to adhere to a standard of reasonable care while performing acts that could foreseeably harm others.

Financial Statements

Documents that report the financial activities and condition of a business or entity, including the balance sheet, income statement, and cash flow statement.

Land Title

A legal document or evidence that proves ownership of a piece of land.