QuestionAugust 19, 2025

Select the correct answer. Which statement comparing short- and long-term investments is true? A. Both offer a high degree of liquidity. B. Both have a minimum maturity period of five years. C. Both include stocks, bonds, and cash. D. Both have the same risk level and potential of returns.

Select the correct answer. Which statement comparing short- and long-term investments is true? A. Both offer a high degree of liquidity. B. Both have a minimum maturity period of five years. C. Both include stocks, bonds, and cash. D. Both have the same risk level and potential of returns.
Select the correct answer.
Which statement comparing short- and long-term investments is true?
A. Both offer a high degree of liquidity.
B. Both have a minimum maturity period of five years.
C. Both include stocks, bonds, and cash.
D. Both have the same risk level and potential of returns.

Solution
4.6(196 votes)

Answer

C. Both include stocks, bonds, and cash. Explanation 1. Analyze liquidity Short-term investments typically offer higher liquidity than long-term investments. 2. Evaluate maturity period Short-term investments do not have a minimum maturity period of five years; they are usually less than five years. 3. Assess investment types Both short- and long-term investments can include stocks, bonds, and cash. 4. Compare risk and returns Short-term investments generally have lower risk and potential returns compared to long-term investments.

Explanation

1. Analyze liquidity<br /> Short-term investments typically offer higher liquidity than long-term investments.<br />2. Evaluate maturity period<br /> Short-term investments do not have a minimum maturity period of five years; they are usually less than five years.<br />3. Assess investment types<br /> Both short- and long-term investments can include stocks, bonds, and cash.<br />4. Compare risk and returns<br /> Short-term investments generally have lower risk and potential returns compared to long-term investments.
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