Factors That Can Cause the Supply Curve for Bonds to Shift

question 54

Multiple Choice

Factors that can cause the supply curve for bonds to shift to the right include

• A) an expansion in overall economic activity.
• B) a decrease in expected inflation.
• C) a decrease in government deficits.
• D) a business cycle recession.

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Definitions:

Exercise Price

The predetermined price at which the holder of an option can buy (in the case of a call option) or sell (in the case of a put option) the underlying asset.

Stock Volatility

A statistical measure of the dispersion of returns for a given stock or market index, typically used to quantify the risk of a stock or market's return.

Exercise Price

The specified price at which the holder of an option can buy (in the case of a call option) or sell (in the case of a put option) the underlying asset.

Time To Expiration

The period remaining until the expiration date of a contract, such as an option or futures contract.