QuestionJune 20, 2025

In addition to being easily stolen, why is cash not a good investment: it earns a low interest rate it decreases in value as compared to inflation it is a liquid asset it is a lending investment

In addition to being easily stolen, why is cash not a good investment: it earns a low interest rate it decreases in value as compared to inflation it is a liquid asset it is a lending investment
In addition to being easily stolen, why is cash not a good investment:
it earns a low interest rate
it decreases in value as compared to inflation
it is a liquid asset
it is a lending investment

Solution
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Answer

Cash is not a good investment because it earns a low interest rate and decreases in value as compared to inflation. Explanation 1. Identify Characteristics of Cash Cash earns a low interest rate and decreases in value compared to inflation. 2. Evaluate Investment Qualities Cash is a liquid asset, which is generally positive for flexibility but not for growth. It is not a lending investment.

Explanation

1. Identify Characteristics of Cash<br /> Cash earns a low interest rate and decreases in value compared to inflation.<br /><br />2. Evaluate Investment Qualities<br /> Cash is a liquid asset, which is generally positive for flexibility but not for growth. It is not a lending investment.
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