Which of the Following Best Describes a Fad

question 10

Multiple Choice

Which of the following best describes a fad?

• A) A merchandise category that typically lasts several seasons
• B) Inventory that can be described as basic merchandise
• C) Merchandise that is in continuous demand over an extended period
• D) Inventory whose sales fluctuate dramatically according to the time of the year
• E) A merchandise category that generates a lot of sales for a short time

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Definitions:

S&P500 Value

A measurement of the stock performance of 500 large companies listed on stock exchanges in the United States.

Portfolio Value

The total market value of all the investments held by an individual or institution, including stocks, bonds, and other securities.

Covered Interest Arbitrage

A strategy involving the conversion of currency into another at current exchange rates, investment in foreign interest-bearing instruments, and the simultaneous hedging of exchange rate risk with a forward contract.

Currency Futures

Standardized contracts to buy or sell a specific currency at a future date and at a predetermined price on the foreign exchange market.