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A Day After US Airways Announced Its New Low Fares

question 18

Multiple Choice

A day after US Airways announced its new low fares for the autumn on travel from New York (i.e.,Newark and LaGuardia Airports) to selected cities in the United States and Canada,American Airlines matched their fares.American Airlines is using a _____ strategy.


Definitions:

Dealer

An individual or firm in the securities business who buys and sells securities for their own account, rather than for customers, thus acting as a principal in the transactions.

Money Market Instrument

Short-term debt instruments, typically with maturities of less than one year, traded in the money market, including treasury bills, commercial paper, and certificates of deposit.

Maturity

The expiration date of a financial instrument, at which point the principal is to be paid back to investors.

Emerging Market Country

Refers to a nation with social or business activity in the process of rapid growth and industrialization.

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