Which of the Following Is an Example of a Negative

question 239

Multiple Choice

Which of the following is an example of a negative shock to an economy?

• A) decreases in oil prices
• B) tax cuts
• C) new technology
• D) terrorist attacks

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Definitions:

Treasury Stock

Shares of a company's own stock that it has reacquired and held in its treasury.

Cumulative

Referring to the total amount accumulated over time, often used to describe interest, dividends, or other quantities that increase over periods.

Preferred Stock

Preferred stock is a type of stock that gives its holders priority over common stockholders in terms of dividend payouts and claims on assets in the event of a liquidation.

Treasury Stock

Refers to shares that were once part of the outstanding shares but were bought back by the company. Now, these shares are held in the company's treasury.