When answering this question, it's important to demonstrate a clear understanding of both short-term and long-term investment strategies and how they align with the organization's financial goals.
Short-term investments are typically more liquid and less risky, designed to meet immediate financial needs or to take advantage of short-term opportunities. Examples include money market funds, Treasury bills, and short-term bonds.
Long-term investments, on the other hand, are aimed at achieving growth over a longer period and may involve higher risk. These can include stocks, long-term bonds, real estate, and other assets that appreciate over time.
Example Answer: "In managing short-term investments, I prioritize liquidity and capital preservation to ensure that the organization can meet its immediate financial obligations and take advantage of any short-term opportunities. I typically invest in money market funds, Treasury bills, and other low-risk, highly liquid assets. For long-term investments, I focus on growth and higher returns, balancing the portfolio to include a mix of stocks, long-term bonds, and real estate. I regularly review and adjust the investment strategy to align with the organization's evolving financial goals and risk tolerance."
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