Which of the Following Financial Assets Is Least Likely to Have

question 74

Multiple Choice

Which of the following financial assets is least likely to have an active secondary market?

• A)common stock of a large public firm
• B)bank loans made to smaller firms
• C)bonds of a major, multinational corporation
• D)debt issued by the federal government

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Definitions:

Autonomous Consumption

The level of consumption expenditure that occurs when income levels are zero, reflecting the basic level of consumption that does not depend on current income.

APS

An acronym for Average Propensity to Save, which is the ratio of savings to the total net disposable income.

Total Saving

The sum of personal, business, and government savings within an economy.

APS

Average Propensity to Save (APS) is the ratio of total savings to total disposable income, indicating the portion of income that households save rather than spend.