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While Cash is a safe and easy store of funds, holding cash is still not without its risks and costs. Select the response choices that describe the risks and costs of holding cash. Cash does not pay much- savings account interest rates are very low when compared to bond yields or equity dividends Opportunity cost - client may miss out on the interest, dividends or capital gains that could come from owning securities and those funds being being fully invested Inflation risk - cash interest may not beat the rising cost of living All of the above

While Cash is a safe and easy store of funds, holding cash is still not without its risks and costs. Select the response choices that describe the risks and costs of holding cash. Cash does not pay much- savings account interest rates are very low when compared to bond yields or equity dividends Opportunity cost - client may miss out on the interest, dividends or capital gains that could come from owning securities and those funds being being fully invested Inflation risk - cash interest may not beat the rising cost of living All of the above

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA2: Investments
Section: Chapter Questions
Problem 3MCQ
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While Cash is a safe and easy store of funds, holding cash is still not without its risks and costs. Select the response choices that describe the risks and costs of holding cash. Cash does not pay much- savings account interest rates are very low when compared to bond yields or equity dividends Opportunity cost - client may miss out on the interest, dividends or capital gains that could come from owning securities and those funds being being fully invested Inflation risk - cash interest may not beat the rising cost of living All of the above
Transcribed Image Text:While Cash is a safe and easy store of funds, holding cash is still not without its risks and costs. Select the response choices that describe the risks and costs of holding cash. Cash does not pay much- savings account interest rates are very low when compared to bond yields or equity dividends Opportunity cost - client may miss out on the interest, dividends or capital gains that could come from owning securities and those funds being being fully invested Inflation risk - cash interest may not beat the rising cost of living All of the above
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