Question

Which statement comparing short- and long-term investments is true?
O A.
Both offer a high degree of liquidity.
• B.
Both have a minimum maturity period of five years.
O C.
Both include stocks, bonds, and cash.
D.
Both have the same risk level and potential of returns.

Answer 1

The statement which is true comparing short- and long-term investments is both include stocks, bonds, and cash.

What is investments?

Investment is the amount which one is invested to secure it or to generate the income with it.

The investment done to earn profit are of two types:

- Short-term investments- The short term investment is the investment in which the time period of investing money is less. In this the profit earn is less.
- Long-term investments-The short term investment is the investment in which the time period of investing money is more. In this, the profit earn is more than the short-term investment.

The short- and long-term investment both include stocks, bonds, and cash.

Hence, the statement which is true comparing short- and long-term investments is both include stocks, bonds, and cash.

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