Which of the Following Would Is Included as Investment Spending

question 62

Multiple Choice

Which of the following would is included as Investment Spending in aggregate demand?

• A)Sandra finances her business from the sale of $200,000 of treasury securities.
• B)Marco buys a new building off the Santa Monica coast for his startup.
• C)Maria purchases $100,000 of foreign bonds.
• D)Allen sells the old truck he used for transporting goods.

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Definitions:

Dollar Change

The difference in the price of a security from one trading period to the next, expressed in dollars.

Exercise Price

The amount for which someone holding an option is allowed to buy (for call options) or sell (for put options) the base asset.

Hedge Ratio

A ratio used to determine the amount of derivatives needed to hedge a particular exposure, indicating the relationship between the position size in hedging instruments and the size of the exposure.

American Put Options

Contracts that give the holder the right, but not the obligation, to sell a specified amount of an underlying security at a specified price within a specified time period.