Speculators Reduce Price Swings for Goods, Increasing Society's Welfare

question 203

True/False

Speculators reduce price swings for goods, increasing society's welfare.

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Definitions:

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term and long-term obligations.

External Financing Need

The gap between the funding a firm needs for its operations and investments, and the amount it can generate internally, implying the need to seek external funding.

Projected Growth Rate

An estimate of the rate at which a company's earnings or revenues are expected to grow in the future.

Sales Increases

A measurement of the rise in a company's sales over a specific period, indicating growth in business operations.