Factors Contributing to the Increased Popularity of Deposits as Investments

question 34

Multiple Choice

Factors contributing to the increased popularity of deposits as investments since the GFC include:

• A)the attractiveness of capital stable investments given the losses experienced on shares
• B)the increase in interest rates paid by banks on deposits
• C)the government guarantee of deposits up to $250 000
• D)the rise in fixed-term deposit rates relative to returns achieved by cash management trusts.
• E)All of these.

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Definitions:

American Society

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Economic Failure

A situation where an economy fails to meet its expected goals or outcomes, leading to negative impacts such as recession, high unemployment, or significant financial losses.

Anti-Chinese Sentiment

Prejudice, hostility, or racism directed against people of Chinese origin or descent, often manifesting in social, political, and economic contexts.

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