An Individual's Risk Tolerance Level Depends on Existing Economic Conditions

question 53

True/False

An individual's risk tolerance level depends on existing economic conditions.For example,when the economy is doing well an individual is more likely to have lower risk tolerance level.

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Definitions:

Check Collection

The process where banks handle checks from the moment they are deposited until the funds are credited to the depositor's account and debited from the check writer's account.

Payment

The act of giving money or other compensation to settle a debt or obligation.

Certified Checks

Checks guaranteed by a bank, verifying that the signer has enough funds in their account to cover the amount specified on the check.

Dishonored

In financial terms, a dishonored instrument (like a check) refers to one that cannot be processed because the payor's account lacks sufficient funds or is closed.