In the Figure Above, a Factor That Could Cause the Demand

question 14

Multiple Choice

In the figure above, a factor that could cause the demand for bonds to decrease (shift to the left) is ________.

• A) an increase in the expected return on bonds relative to other assets
• B) a decrease in the expected return on bonds relative to other assets
• C) an increase in wealth
• D) a reduction in the riskiness of bonds relative to other assets

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Definitions:

Net Cash Provided

The total amount of cash generated by a company's activities, including operating, investing, and financing activities, during a specific period.

Cash Dividends

The distribution of profits by a corporation to its shareholders in the form of cash.

Indirect Method

A technique used in cash flow statements to adjust net income for the changes in non-cash accounts to calculate net cash from operating activities.

Operating Activities

Activities directly related to the primary operations of a business, including production, sales, and day-to-day administration.