A Flight to Quality Refers to a Shift by Savers

question 42

Multiple Choice

A flight to quality refers to a shift by savers from

• A)bonds and into stocks.
• B)stocks and into gold or other precious metals.
• C)bonds and into real assets, such as real estate.
• D)low-quality bonds and into high-quality bonds.

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Definitions:

Ponzo Illusion

A visual illusion where two horizontal lines of identical length appear to be of different lengths because of converging parallel lines.

Basal Metabolic Rate

The rate at which the body uses energy while at rest to maintain vital functions such as breathing and keeping warm.

Set Point

A theory suggesting that an individual's body weight is maintained around a biologically determined point, with the body regulating metabolism to maintain weight around this point.

Drive

An internal motivational state created by physiological needs that drives an organism to fulfill those needs.