Problemas
Question 16 (1 point) Since the potential for default is very low for some types of money market securities, it's not necessary to assess the risk before re investing your money in one. OTrue False
Roztwór
Aura
professionell · Tutor durante 6 años
4.3
(190 Votos)
Respuesta
False
Explicación
## Step 1The problem statement is a statement about the necessity of assessing the risk before re-investing money in money market securities. The statement is that since the potential for default is very low for some types of money market securities, it's not necessary to assess the risk before re-investing your money in one.## Step 2The statement is false. Regardless of the type of investment, it is always necessary to assess the risk before re-investing. This is because the risk of default, which is the risk that the issuer of the security will not be able to pay back the principal or make interest payments, can vary greatly among different types of money market securities.## Step 3Even though some money market securities have a very low potential for default, it is still important to assess the risk before re-investing. This is because the risk of default can change over time, and even a low-risk security can become high-risk if the issuer's financial situation deteriorates.