READING 2 / QUICK QUIZ

What a Later Reward Is Worth

3 questions. Choose the meaning or usage that best fits each situation. Try answering before reopening the passage.

1Why did the fictional audit find that capital preservation had not been achieved?A. The audit compared only decorative features of the report.B. The closing balance was below the original deposit despite some income.C. Any receipt of income automatically guaranteed protection of the original deposit.D. The label alone made a shortfall impossible.

2An asset's ease of prompt sale without substantial loss in value is its _____.A. liquidityB. originalityC. popularityD. longevity

3Which addition is risk mitigation within the fictional exercise?A. A decorative change unrelated to any identified loss scenario.B. A safeguard that reduces the modeled loss from an identified venture failure.C. A claim that no possible adverse outcome exists anywhere.D. A larger promised return with no change to any loss exposure.

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