The Boom Period of the Late 1990s Was a Good

question 19

Multiple Choice

The boom period of the late 1990s was a good example of:

• A) the irrationality of long- term investments when share prices are not high enough.
• B) the depressing effect on share prices of low expectations about future dividends.
• C) the Q- theory of investment at work.
• D) the impact that low interest rates have of investment expenditure.

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Definitions:

Statement of Cash Flows

A financial statement summarizing the total cash received by a company from its operational activities and external funding sources, alongside the total cash expenditures for business operations and investment activities over a specific timeframe.

Investing Activities

Transactions involving the purchase and sale of long-term assets and other investments not considered cash equivalents.

Statement of Cash Flows

A financial report that shows how changes in balance sheet accounts and income affect cash and cash equivalents, breaking the analysis down to operating, investing, and financing activities.

Investors

People or organizations that invest money hoping to gain financial profits.