INSTRUCTIONS: Choose the Word or Phrase in [ ] Which

question 121

Multiple Choice

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.
-Annual dividends per share divided by market price per share equals [total yield | dividend yield].

• A)for the first item
• B)for the second item
• C)if neither item will correctly complete the statement.

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Definitions:

Federal Reserve

The central banking system of the United States, responsible for monetary policy, regulation of the banking industry, and stability of the financial system.

Interest Rates

The cost of borrowing money or the return on invested capital, expressed as a percentage of the principal, affecting economic activity by influencing spending and saving behaviors.

Unemployment

The situation in which individuals who are capable of working and are seeking work are unable to find employment.

Marginal Propensity

The ratio of change in an economic variable (such as consumption) that occurs with a change in another variable (such as income).