An Increase in the Expected Future Price of a Good

question 333

Multiple Choice

An increase in the expected future price of a good

• A) increases its demand.
• B) decreases its demand.
• C) increases its supply.
• D) has no effect on either its demand or its supply.

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Definitions:

Repurchase

The act of buying back previously sold stock or bonds from the market or shareholders by the issuing company, often to reduce the amount of outstanding shares and increase the value of remaining shares.

Book Value

Book value is the net value of a company's assets found on its balance sheet, calculated as the total assets minus intangible assets and liabilities.

Par Value

The nominal face value of a security as stated by the issuer, often used in reference to bonds or shares.