The Price of Pineapples Has Risen Dramatically

question 130

Multiple Choice

The price of pineapples has risen dramatically. Which of the following is likely to happen?

• A) The quantity of pineapples supplied will increase.
• B) The quantity of pineapples supplied will decrease.
• C) The supply of pineapples will decrease.
• D) The supply of pineapples will increase.

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Definitions:

New Stock

Shares that are issued for the first time to the public by a company seeking to raise capital.

Indirect Method

A technique used in financial reporting to convert net income into net cash flow from operating activities, by adjusting for non-cash transactions.

Investment Bankers

Financial professionals who assist corporations and governments in raising capital by underwriting and issuing securities and advising on mergers and acquisitions.

Financial Intermediation

The process by which financial institutions act as intermediaries between lenders and borrowers.