D. Volatility in prices

Here's why:

A. High liquidity - This is not necessarily true for all capital markets. Some investments, like real estate or certain types of stocks, can be quite illiquid.

B. Short-term investments - This is more characteristic of the money market, not the capital market. Capital markets are generally used for long-term investments.

C. Low risk - This is not necessarily true. While there are low-risk investments in the capital market, there are also high-risk investments. The level of risk depends on the specific investment.

D. Volatility in prices - This is a characteristic of capital markets. Prices of securities can fluctuate greatly in the capital market due to a variety of factors, including economic indicators, investor sentiment, and political instability.

Question

D. Volatility in prices

Here's why:

A. High liquidity - This is not necessarily true for all capital markets. Some investments, like real estate or certain types of stocks, can be quite illiquid.

B. Short-term investments - This is more characteristic of the money market, not the capital market. Capital markets are generally used for long-term investments.

C. Low risk - This is not necessarily true. While there are low-risk investments in the capital market, there are also high-risk investments. The level of risk depends on the specific investment.

D. Volatility in prices - This is a characteristic of capital markets. Prices of securities can fluctuate greatly in the capital market due to a variety of factors, including economic indicators, investor sentiment, and political instability.

Knowee AI · Accepted Answer

D. Volatility in prices

Here's why:

A. High liquidity - This is not necessarily true for all capital markets. Some investments, like real estate or certain types of stocks, can be quite illiquid.

B. Short-term investments - This is more characteristic of the money market, not the capital market. Capital markets are generally used for long-term investments.

C. Low risk - This is not necessarily true. While there are low-risk investments in the capital market, there are also high-risk investments. The level of risk depends on the specific investment.

D. Volatility in prices - This is a characteristic of capital markets. Prices of securities can fluctuate greatly in the capital market due to a variety of factors, including economic indicators, investor sentiment, and political instability.

Which of the following is a characteristic of the Capital Market? A. High liquidity B. Short-term investments C. Low risk D. Volatility in prices

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