A common strategy to reduce the risk of a large financial loss is:
A) to buy and sell assets through a mutual fund, since mutual funds cannot lose money.
B) to diversify financial assets so that their risks of failure are unrelated.
C) to buy financial assets from developing countries, because the rates of return are very high and safe and their national currencies are much more stable than the U.S. dollar.
D) to buy real instead of financial assets.
Correct Answer:
Verified
Q202: The term liquidity means that the:
A) asset
Q203: The financial system performs certain tasks to
Q204: An illiquid asset:
A) cannot be sold.
B) provides
Q206: Which of the following assets is the
Q208: All of the following are financial assets
Q209: Which of the following is NOT one
Q211: Which of the following assets is the
Q212: Diversification in investment is achieved when:
A) the
Q212: A loan is:
A)a liability for the lender
Q214: You are choosing whether to purchase a
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