13
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Electric Current

Question 13 • *CHS TN-Physical Science

Which statements describe short-term investments? Choose three correct answers.They are difficult to change into cash.They come with little or no risk.They have lower rates of return.They require less cash than others.They require large amounts of money.

Answer
A
They are difficult to change into cash.
B
They come with little or no risk.
C
They have lower rates of return.
D
They require less cash than others.
E
They require large amounts of money.

Explanation

Short-term investments are generally easy to convert into cash and are designed to preserve money, so they usually come with little or no risk. That lower risk typically means lower rates of return. They can also be started with less money than many long-term investments, so the correct statements are that they have little or no risk, lower returns, and require less cash.

AI-written and checked against the verified answer.

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