(Consider This) the Main Point of the Consider This Box

question 118

Multiple Choice

(Consider This) The main point of the Consider This box on clipping coins is that

• A)decreases in the money supply cause deflation.
• B)decreases in tax rates often increase tax revenues.
• C)inflation imposes a "hidden tax" on those who hold money.
• D)demand creates its own supply.

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Definitions:

Preferred Shares

Preferred shares are a type of stock that provides a fixed dividend, taking precedence over common stock in the distribution of dividends and assets upon the company's liquidation.

Redemption Value

The value at which a bond or other debt security can be redeemed before its maturity by the issuer.

Stockholders' Equity

The owners' residual interest in a corporation, calculated as the difference between the company's total assets and total liabilities.

Par Value

The face value of a bond or stock as stated by the issuer, which does not necessarily reflect its market value.