Seeing is believing!
Before you order, simply sign up for a free user account and in seconds you'll be experiencing the best in CFA exam preparation.
Basic Question 1 of 18
Investments with low liquidity include all of the following except ______.
B. coins and stamps
C. precious metals
D. All of the above
A. antiques and art
B. coins and stamps
C. precious metals
D. All of the above
User Contributed Comments 9
| User | Comment |
|---|---|
| achu | Remember, precious metals ALSO considered "low liquidity." |
| Kashi2010 | It depends entirely on how you define 'precious metals' of course, but the Gold & silver ETFs are amongst the most traded & most liquid on the market today, and derivative contracts (futures/options) are also incredibly liquid. The only form of investment in precious metals that is not liquid would be physicla holdings (i.e. gold/silver bars), but since the vast majority of investors invest in the physical asset via an ETF proxy, this question appears misleading. |
| michlam14 | totally agree on the precious metals, in fact I'm pretty sure financial news talks specifically about the prices of "precious metals" in reference to futures etc. they didnt have an issue mentioning stamps here, I think they should have just directly used the term gold bars. |
| johntan1979 | My brain must be screwing me when I thought that coins and stamps are those everyday pennies, quarters and USPS stamps :p |
| schweitzdm | The wording of this problem is very odd. |
| ascruggs92 | Yeah this question needs to be changed. Maybe gold bars are considered low liquidity but precious metals are traded very frequently through proxies on public exchanges |
| lordcomas | They mention precious metals not contracts nor instruments for precious metals. so,, think on how difficult is to move silver containers from another country to yours. |
| khalifa92 | precious metals are illiquid because they are unique and differ from each other like all other real assets. |
| walterli | low liquidity = heavy to carry |
Your review questions and global ranking system were so helpful.
Lina
Learning Outcome Statements
describe classifications of assets and markets
describe the major types of securities, currencies, contracts, commodities, and real assets that trade in organized markets, including their distinguishing characteristics and major subtypes
CFA® 2025 Level I Curriculum, Volume 3, Module 1.