Which Factor Does NOT Help Explain the Recent Expansion of the Corporate

question 69

Multiple Choice

Which factor does NOT help explain the recent expansion of the corporate bond market in Australia?

• A) The desire by fund managers to diversify their portfolio.
• B) Strong institutional demand for fixed- interest securities.
• C) Declining supply of government securities.
• D) Excess reserves held by the banking system.

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Definitions:

Economically Efficient

A condition in which a system optimizes the allocation of resources, producing the maximum number of goods and services with the least waste.

Entrepreneurial Ability

The skillset that enables individuals to recognize business opportunities, innovate, undertake risks, and manage businesses effectively.

Production Techniques

The methods and processes used by firms to produce goods or deliver services, including all aspects from initial design to final output.

Economic Loss

A situation where revenues from business activities are less than the expenses and costs associated with sustaining the business.