Knowee
Questions
Features
Study Tools

Which of the following is a characteristic of the Capital Market?  A. High liquidity  B. Short-term investments  C. Low risk  D. Volatility in prices

Question

Which of the following is a characteristic of the Capital Market?

A. High liquidity
B. Short-term investments
C. Low risk
D. Volatility in prices

🧐 Not the exact question you are looking for?Go ask a question

Solution

D. Volatility in prices

Here's why:

A. High liquidity - This is not necessarily true for all capital markets. Some investments, like real estate or certain types of stocks, can be quite illiquid.

B. Short-term investments - This is more characteristic of the money market, not the capital market. Capital markets are generally used for long-term investments.

C. Low risk - This is not necessarily true. While there are low-risk investments in the capital market, there are also high-risk investments. The level of risk depends on the specific investment.

D. Volatility in prices - This is a characteristic of capital markets. Prices of securities can fluctuate greatly in the capital market due to a variety of factors, including economic indicators, investor sentiment, and political instability.

This problem has been solved

Upgrade your grade with Knowee

Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.