Question
Asset Liquidity Financing Plan Low Liquidity High Liquidity Short Term 1 High Profit High Risk Long Term 4 Low Profit Low Risk Why is Box
| Asset Liquidity | ||
| Financing Plan | Low Liquidity | High Liquidity |
| Short Term | 1 High Profit High Risk | |
| Long Term | 4 Low Profit Low Risk |
Why is Box #1 considered High Profit?
| Because short term interest rates are normally higher than long term interest rates. | ||
| Because short term interest rates are normally lower than long term interest rates. | ||
| Because short term interest rates and long term interest rates are normally the same. | ||
| None of the above |
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Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert J Hughes
9th Edition
0073382329, 9780073382326
