When There Is Unsustainable Rapidly Rising Prices of Some Type

question 5

Multiple Choice

When there is unsustainable rapidly rising prices of some type of financial asset, such as stocks, we refer to this as a(n) :

• A)liquidity trap.
• B)asset price bubble.
• C)bad-precedent problem.
• D)moral-hazard problem.

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Definitions:

Mutarotation

Mutarotation is the process of spontaneous change in the optical rotation because of the change in the equilibrium between two anomers of a sugar in solution.

Amygdalin

A naturally occurring compound found in the seeds of many fruits that releases cyanide when metabolized.

D-Aldohexoses

A type of simple sugar (monosaccharide) with six carbon atoms and an aldehyde group, where the hydroxyl group on the highest-numbered chiral carbon points to the right in the Fischer projection.

D-Arabinose

A naturally occurring aldopentose sugar, notable for its role in the biosynthesis of many plant and bacterial polysaccharides.