A Technical Analyst Might Use Credit Balances in Brokerage Accounts

question 43

Multiple Choice

A technical analyst might use credit balances in brokerage accounts as follows:

• A) Sell stock when credit balances rise
• B) Buy stock when credit balances rise
• C) Sell stock when credit balances decline
• D) b and c
• E) None of the above

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Definitions:

Inflation

The speed at which the overall price level of goods and services increases, diminishing buying power.

Monetarists

Economists who believe that variations in the money supply have major influences on national output in the short run and the price level over longer periods, as well as on inflation.

Money Supply

The overall quantity of currency and other liquid instruments circulating in an economy at a particular time.

Recession

A significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.