Chapter 19 Review

The most liquid investment:

• Rare coins

• Real estate

• Savings account

• A house

A person who desires high income from an investment would be concerned with

• Safety

• Return

• Liquidity

• Risk

Which of the following is investing for current income?

• A family that wants to buy a vacation home

• A retired person who needs to pay living expenses

• Student putting away money for college

• Family that wants to buy a vacation home

Investing is the storage of money for future use.

• True

• False

Liquidity is the ease with which an investment can be changed into cash without losing its value.

• True

• False

Liquidity is the ease with which an investment can be changed into cash without losing its value.

• True

• False

Market value is the price at which a share of stock can by bought or sold in the stock market.

• True

• False

Common stock has priority over preferred stock in the payment of dividends.

• True

• False