Factors That Decrease the Demand for Bonds Include

question 56

Multiple Choice

Factors that decrease the demand for bonds include

• A)an increase in the volatility of stock prices.
• B)a decrease in the expected returns on stocks.
• C)a decrease in the inflation rate.
• D)a decrease in the riskiness of stocks.

---

Definitions:

Direct Material Costs

The costs of raw materials that can be directly traced to the production of a specific product.

Direct Material Quantity Variance

The difference between the actual amount of direct materials used and the standard amount expected to be used, multiplied by the standard cost per unit of material.

Actual Quantity Purchased

The true amount of materials or goods that a company buys within a specific time frame, which can be compared to budgeted or planned quantities.

Fixed Manufacturing Overhead Volume Variance

The difference between budgeted fixed manufacturing overhead and the amount applied to production, based on standard hours.