Applying What You Have Learned About Investments Introduced to You

question 39

Multiple Choice

Applying what you have learned about investments introduced to you in Chapter 19,put the following investments in order from riskiest to least risky.Which of following lists begin with the least risky investment and ends with the most risky? Least risky = 1;most risky = 5

• A)1)Bonds;2)Mutual Funds;3)ETFs;4)Preferred Stock;5)Common Stock
• B)1)Preferred Stock;2)Common Stock;3)Mutual Funds;4)ETFs;5)Bonds
• C)1)Common Stock;2)Bonds;3)Mutual Funds;4)ETFs;5)Preferred Stock
• D)1)Bonds;2)Common Stock 3)Mutual Funds 4)ETFs 5)Preferred Stock

Recognize the structure and consequences of the national (federal) debt and public debt.

Analyze the influence of fiscal policy on economic stability, growth, and employment through government spending, taxation, and transfer payments.

Understand the relationship between fiscal policy actions (e.g., tax cuts, government spending) and their intended and unintended economic outcomes.

Distinguish between nondiscretionary and discretionary fiscal policy and their respective roles in economic management.

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Definitions:

Downward-Sloping

A term used to describe a graph line that decreases in height as it moves from left to right, commonly associated with demand curves in economics, indicating that quantity demanded decreases as price increases.

Demand Curve

A graph depicting the relationship between the price of a good and the quantity of the good that consumers are willing to purchase at that price.

Monopsony

A market situation where there is only one buyer for a product or service, giving the buyer substantial control over the market price.

Collude

The act of cooperating or conspiring, especially in a secretive manner among firms, to limit competition or manipulate market prices.