Orlando, a Recent Graduate of a Community College, Is About

question 170

Multiple Choice

Orlando, a recent graduate of a community college, is about to make his first investment in the stock market. Which of the following would be a cautious way for Orlando to start investing?

• A) future contracts in oil
• B) index funds
• C) short-selling technology stocks
• D) commodity market transactions in precious metals

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Definitions:

Tax Revenue

The revenue collected by governments via taxes, which is allocated to finance public services and meet governmental duties.

Total Tax

The cumulative amount of taxes imposed by a government from various sources, including income, sales, and property taxes.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of that good that consumers are willing to buy at various prices.

Supply Curve

A graphical representation of the relationship between the price of a good and the quantity of the good that producers are willing to sell, holding all else constant.