Ask Question
BusinessBusiness
15 April, 21:18

Select the correct answer. Nisha invested a lot of money in real estate a few years ago. Now that she plans to move to another city, she's been trying to find a buyer for her property. It is taking her a lot longer than expected to find a buyer. What type of risk is Nisha facing as an investor? A. call risk B. credit risk C. currency risk D. liquidity risk E. taxability risk

+5
Answers (1)
  1. 15 April, 21:30
    0
    D. liquidity risk

    Explanation:

    Liquidity risk refers to the risk that occurs when a person or an organization unable to convert their hard assets into cash or cash equivalent as soon as possible.

    This can be seen In the example above,

    After moving to another city, Nisha probably need her money to purchase new property or purchase her basic needs. But she can't do it until she's able to sell the property that she has in her old place. This is why unable to sell her property created a liquidity risk for Nisha.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Select the correct answer. Nisha invested a lot of money in real estate a few years ago. Now that she plans to move to another city, she's ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
A U. S. senator has just told you that for a generous contribution to her reelection fund, she would ignore your company's apparent violation of several antipollution laws.
Answers (1)
Red Rock Bakery purchases land, building, and equipment for a single purchase price of $260,000. However, the estimated fair values of the land, building, and equipment are $126,000, $198,000, and $36,000, respectively, for a total estimated fair
Answers (1)
Ute Co. had the following capital structure during Year 1 and Year 2: Preferred stock, $10 par, 4% cumulative, 25,000 shares issued and outstanding $ 250,000 Common stock, $5 par, 200,000 shares issued and outstanding 1,000,000 The preferred stock
Answers (1)
Fretonia and Libstien are the same except Fretonia has a larger capital stock. Both countries undertake policies that raise their saving rates to the same higher level. We would expect that: a.
Answers (1)
What is an advantage of using multimedia slides? Extensive training and publishing experience allows you to distribute basic presentations. You can create professional, dynamic presentations that are easily updated.
Answers (1)
New Questions in Business
The last stage of the new-product development process is
Answers (1)
Divided Fantastic Frames sells its frames for $15 per unit. Variable costs total $6 per unit, and fixed costs total $90,000. If Fantastic Frames increases sales by
Answers (1)
A trade show is usually focused on what? a. an employer b. an industry c. a school d. a craft
Answers (1)
The Harrisburg Store has net working capital of $2,715, net fixed assets of $22,407, sales of $31,350, and current liabilities of $3,908. How many dollars' worth of sales are generated from every $1 in total assets
Answers (1)
Select all maintenance procedures that may be performed in an office. update software replace printer cartridges clean copy machines install virus-protection software print copies to be distributed at a meeting
Answers (1)
Home » Business » Select the correct answer. Nisha invested a lot of money in real estate a few years ago. Now that she plans to move to another city, she's been trying to find a buyer for her property. It is taking her a lot longer than expected to find a buyer.
Sign Up Forgot Password?