What Would You Expect to Happen to the Supply and Demand

question 130

Multiple Choice

What would you expect to happen to the supply and demand model for Treasury securities if a new law makes it easier for foreign investment in the United States?

• A) The demand curve shifts to the right,causing the price of treasury securities to increase.
• B) The demand and supply curves shift to the right,causing the price of Treasury securities to increase.
• C) The demand and supply curves shift to the left,causing the price of treasury securities to decrease.
• D) The demand curve shifts to the right,causing the price of Treasury securities to decrease.
• E) The supply curve shifts to the left,causing the price of Treasury securities to increase.

---

Definitions:

Bonds Payable

Long-term liabilities representing money owed by a company to bondholders, to be paid back at a future date.

Common Stock

A type of equity security that represents ownership in a corporation, giving shareholders voting rights and a share in the company's profits via dividends.

Premium on Bonds Payable

The amount by which the bond's selling price exceeds its face value.

Paid-In Capital

The amount of money raised by a company in exchange for shares of its stock, including both the par value of the stock and amounts in excess of par value.