A Stock Valued at $75 Decreased by 20% and Then

question 206

Multiple Choice

A stock valued at $75 decreased by 20% and then increased by 20%. What was the value of the stock after the increase?

• A) $75
• B) $72
• C) $60
• D) $90
• E) $80

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Definitions:

Fed

The Federal Reserve System, which is the central banking system of the United States, responsible for monetary policy, banking supervision, and financial services.

Money Expansion

An increase in the total supply of money in circulation within an economy, typically achieved through central bank operations.

Excess Reserves

Funds that banks hold over and above the legal requirement set by the central bank or banking regulator.

New Reserves

Additional funds or assets that financial institutions or countries set aside to meet future liabilities or unforeseen needs.