A Buyer Is Said to Have a Demand for a Good

question 103

Multiple Choice

A buyer is said to have a demand for a good only when

• A)The buyer wants to own the good.
• B)The buyer is both willing and able to purchase the good at alternative prices.
• C)The price of the good is low enough.
• D)An adequate supply of the good is available for purchase.

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Definitions:

Bank of Canada

Canada's central bank, responsible for monetary policy, issuing currency, and regulating financial institutions.

Securitized Assets

Financial securities that are created by pooling various types of contractual debt such as mortgages, and selling them to investors.

Convertibles

Refers to convertible bonds or preferred stocks that can be converted into a predetermined amount of the company's equity at certain times during their life, usually at the discretion of the bondholder.

Warrants

Financial instruments that give the holder the right, but not the obligation, to buy a company's stock at a specific price before a certain date.