Which Two of the Following Statements Are Correct

question 15

Multiple Choice

Which two of the following statements are correct?

• A) It is more expensive to obtain a quotation on the Official List than the Alternative Investment Market.
• B) Companies with a price quote on PLUS (previously OFEX) are not regulated by the UK Listing Authority.
• C) Private equity is a term to describe the equity capital of family owned limited companies. It does not cover public limited companies with shares held by institutional shareholders.
• D) To join the Alternative Investment Market a company is required to have 3 years of accounts available for inspection.

Calculate savings for given levels of disposable income.

Understand and calculate the Average Propensity to Save (APS) and the Average Propensity to Consume (APC).

Define and calculate the Marginal Propensity to Consume (MPC) and the Marginal Propensity to Save (MPS).

Determine the level of disposable income at which induced consumption, savings, and the APS are zero.

---

Definitions:

Performance Rating

An evaluation of the investment performance of a security or portfolio compared to a standard or benchmark.

Morningstar Rating

A system used to rate mutual funds and other investment vehicles based on past performance, risk, and other factors, typically ranging from one to five stars.

Net Asset Value

The net worth of a fund, calculated by subtracting its liabilities from the sum of its assets, commonly associated with mutual and exchange-traded funds.

Closed-end Fund

A type of investment fund with a fixed number of shares that are traded on the stock exchange, unlike mutual funds which continuously offer new shares or buy back existing shares.