Asset Price Bubbles Occur Because

question 46

Multiple Choice

Asset price bubbles occur because

• A)of a global imbalance in assets.
• B)the supply of assets falls at a faster rate than the demand thus creating a shortage.
• C)expectations of price movements are factored in as a result of the rise in global asset levels.
• D)asset traders become more risk averse over time.
• E)regulators take insufficient notice of the supply and demand of global assets.

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Definitions:

Special Revenue Fund

A fund used by a government to account for revenue from specific sources that are legally restricted to expenditure for particular purposes.

Capital Projects Fund

A type of governmental accounting fund used to finance and track the costs of major capital improvements and constructions.