The Rationing Function of Prices Refers to

question 54

Multiple Choice

The rationing function of prices refers to

• A) the situation when government must intervene in a market when there is a large shortage or surplus.
• B) the synchronization of decisions by buyers and sellers that leads to an equilibrium.
• C) the synchronization of decisions by buyers and sellers through the direction of government agencies.
• D) the situation when only the rich get the goods they want.

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Definitions:

Loan

A sum of money borrowed that is expected to be paid back with interest.

Asset Securitization

The process of pooling various types of contractual debt such as mortgages, and selling their related cash flows to third party investors as securities.

Investment Choices

The various options available to investors for allocating their funds, including stocks, bonds, real estate, and mutual funds.

Returns

The profit or loss generated on an investment over a specific period.