An investor who has a resource constraint:
A)pays no income taxes.
B)has insufficient funds to purchase a security.
C)has a relatively high marginal tax rate.
D)has only one source of income.
E)will only invest in socially acceptable securities.

Question

Quizplus · Accepted Answer

An investor with a resource constraint has insufficient funds to purchase a security, so option B is the best choice. Options A, C, D, and E are not necessarily true for all investors with a resource constraint.

An Investor Who Has a Resource Constraint