Relative Price Changes Are a Desirable and Essential Ingredient of the Market

question 130

True/False

Relative price changes are a desirable and essential ingredient of the market mechanism.

---

Definitions:

Discounted

A reduction applied to the price of goods, services, or securities, or the process of calculating the present value of a series of future cash flows.

Simple Interest

Interest calculated only on the initial principal of an investment or loan over a specified time period.

Contract

A legally binding agreement between two or more parties outlining obligations, rights, and conditions.

T-Bill

Short for Treasury Bill, a short-term government security issued at a discount from the par value and repaid at maturity.