While Cash is a safe and easy store of funds, holding cash is still not without...

 

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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

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