In Terms of the Asset Classes of Cash and Fixed

question 4

Multiple Choice

In terms of the asset classes of cash and fixed interest, nominate the incorrect statement:

• A) Cash may be invested on the short term money market at the cash rate and is more liquid than fixed interest.
• B) The essential feature of most fixed interest investments is that the interest rate is set at the start of the period and the principal is fixed.
• C) Cash is always regarded as a riskier investment than fixed interest.
• D) None of the above.