When Investment Is Less Than Planned Investment, Aggregate Planned Expenditure

question 379

Multiple Choice

When investment is less than planned investment, aggregate planned expenditure is ________ than actual aggregate expenditure and inventories are ________ than planned.

• A) greater; greater
• B) greater; less
• C) less; greater
• D) less; less

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Definitions:

Mutual Funds

Investment programs funded by shareholders that trade in diversified holdings and are professionally managed.

Maintenance Margin

The minimum equity an investor must maintain in a margin account after the purchase has been made, to keep the position open.

Initial Margin

The minimum amount of funds required to open a position in the securities market, used as a deposit to cover some of the credit risk of the counterparty.

Stop-Buy Order

A type of stock market order that buys a security once its price ascends to a specific point, usually to limit losses or enter the market at a favorable momentum.