An Individual with a Diversified Stock Portfolio Usually

question 29

Multiple Choice

An individual with a diversified stock portfolio usually

• A)holds only the stocks of conglomerates (firms that participate in many industries).
• B)deals with several brokerage houses.
• C)holds stock in several types of firms.
• D)holds stocks with several maturity dates.

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Definitions:

Deflation

A decrease in the general price level of goods and services in an economy over a period, leading to increased purchasing power of the currency.

Disinflation

A reduction in inflation rate, signifying a deceleration in how quickly the costs for goods and services increase.

Inflation

The progression speed of the general price index for goods and services, diminishing the effective value of money.

Cost-Push Inflation

Rising costs of doing business push up prices.