Some savings and investment choices have the potential for higher earnings.However,these may also be difficult to convert to cash when you need the funds.This problem refers to:
A)Inflation risk
B)Interest rate risk
C)Income risk
D)Personal risk
E)Liquidity risk

Question

Quizplus · Accepted Answer

Liquidity risk refers to the possibility of not being able to convert investments into cash when needed. Therefore, it is always important to consider the liquidity of investments before making a choice. In this case, choosing an option that is more liquid would be the best choice to avoid the risk of not being able to access the funds when needed.

Some Savings and Investment Choices Have the Potential for Higher