Which of the following financial assets is most likely to have a higher amount of risk than the others?
A. Stocks
B. Bonds
C. Mutual funds
D. Savings accounts
A. Stocks
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When the equilibrium price level adjusts to an increase in autonomous investment spending, the impact of the multiplier effect resulting from that spending increase
A) will increase nominal GDP by an amount smaller than the multiplier effect would indicate. B) is only felt when there are changes in consumption. C) will increase real GDP by an amount smaller than the multiplier effect would indicate. D) will have no impact on the real GDP.
When the official dollar price of a foreign currency is lowered, the dollar is being
A) appreciated. B) overvalued. C) undervalued. D) devalued. E) revalued.
If the government wished to shift aggregate demand to the right, it might:
A. pressure the Fed to decrease the money supply. B. increase government spending. C. increase income taxes. D. Any of these things might cause aggregate demand to shift to the right.
Firms that use a price-matching strategy attempt to keep price at:
A. the oligopoly price or the monopoly price. B. the monopoly price. C. marginal cost. D. the oligopoly price.