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:

Permanent Change

A lasting or enduring alteration in conditions, status, or policies that does not revert to its original state.

Experience

In a professional context, experience refers to the knowledge or skill obtained from involvement in or exposure to certain events, activities, or jobs over time.

Financial Management

The process involves planning, organizing, directing, and controlling financial activities such as procurement and utilization of funds of an enterprise.

Cultural Awareness

The recognition and understanding of the differences and similarities between cultures, enhancing communication and interaction.