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Economics

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Domingo Boyle

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Cards in this guide (17)
What is Standard and Poors

Standard and Poors is one of the 3 premier Credit Rating Agencies in the world.

What happens when the supply of a nonperishable good is greater than the consumer wants to buy

Either the price drops until the consumers are prepared to buy more, or supplier are left holding surplus stocks until replacement purchases clear these inventories.

No manufactured good is truly non-perishable, and so will eventually require replacement.

What are limited quantities of resources to meet unlimited wants

Scarcity

The main advantage of diversification as an investment policy is that it

Reduces risks to investors

Which one of the following is NOT one of the four most common indicators of the inflammatory response

Fever.

God bless!

How does a pension fund act as an investor

the company invests money collected from employers

In the financial system who are the borrowers

households, individuals, and businesses

Is denaturalization of a protein always permanent

No

The physical capital used by a woodworker to make furniture would include

saws and drills

Which of these are issued by corporations and us government

bonds

When you own a mutual fund what exactly do you own

Mutual fund is a low risk investment. If you invest in a mutual fund, you owns shares of the mutual fund company who is selling you fund. But you do not actually own any underlying asset of the stocks or securities that mutual fund has invested in even they are using your money to invest.

What is the option to sell shares of stock at a specified time in the future called

It's actually called a call option. I will provide you with a definition I just found for this, and some additional tips on options trading.

- - - - -

The option to sell shares is a put. The option to buy them is a call.

What is the annual rate of return on a bond bought on the open market called

yield

Which of the following is a true statement about the call option

It is a way for investors to avoid paying a future higher price of a stock.

NOVANET

What markets in which money is lent for periods longer than one year

Capital markets

What is the market for selling financial assets that can only be redeemed by the original holder

Primary Market

What is a fund that pools the savings of many individuals and invests this money in a variety of stocks bonds and other financial assets called

mutual fund

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