An investment adviser has a client who wants to save for college for her child. the child will be entering college in five years. this would be an example of <u>an </u><u>investment constraint</u>.
More about investment constraint :
The variables that restrict or limit an investor's range of investment possibilities are known as investment restrictions. The limitations may be internal or external restrictions. While external restrictions are produced by an outside party, such as a government agency, internal constraints are produced by the investor themselves.
Cash expenditures anticipated and necessary at a given point in the future that are often more than the revenue available are referred to as liquidity constraints. Time Horizon restrictions refer to the time frames over which the portfolio's returns are anticipated to meet particular needs in the future.
Tax constraints depend on when, how, and if returns of different types are taxed. Legal and Regulatory constraints are mostly externally generated and may affect only institutional investors
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Answer: Managed Float
Explanation:
Also called "Dirty Float", the Managed float is an exchange rate system that allows for the currency of a country to be set by the forces of demand and supply in the market.
However, unlike in a clean float, the Central bank will occasionally intervene in the market to influence the how fast the currency is changing value or to control the direction it is going.
This is usually done to protect the domestic economy from sudden shocks in the global economy.
Answer: The nonrefundable $20 ticket is the sunk cost.
Explanation: A sunk cost is a cost that has already been incurred and which cannot be recovered.
However, a prospective cost is a future cost that is yet to be incurred and which can be avoided if an action or inaction is taken.
Therefore, from the scenario in the question above, we can see that Susie has already purchased the soccer match ticket which costs $20, and she is yet to incur the costs of gas, wear and tear, and parking fee.
Hence, the $20 is the sunk cost because it has already been incurred and cannot be recovered, while the $10 for gas and wear and tear, and $5 for parking are the prospective costs that will be avoided.
Answer: Paradigm shift
Explanation:
The paradigm shift is one of the type of business management process that refers to the fundamental change in the current process and in the model.
The paradigm shifts is one of the concept in which that happened in terms of various types of context such as when the new technology are get introduced then it alter the new production process of the products and the services.
According to the given scenario, the process of delivering the groceries to the consumers. Therefore, Paradigm is the correct answer.
