To achieve both liquidity and an adequate return, you should consider investing in
A) only one money market investment with a high return and low liquidity.
B) only one money market investment with low return and high liquidity.
C) money market investments plus other investments with varied returns and levels of liquidity.
D) multiple money market investments with high returns and high liquidity.

Question

Quizplus · Accepted Answer

Investing in a mix of money market investments and other investments with varied returns and levels of liquidity allows for a balance between liquidity (ease of converting to cash) and achieving an adequate return. Diversification helps manage risk and meet different financial goals.

To Achieve Both Liquidity and an Adequate Return, You Should