A Shock That Could Trigger a Recession Is a

question 70

Multiple Choice

A shock that could trigger a recession is a

• A) large military buildup
• B) large increase in the price of oil
• C) sudden unexplained increase in consumption
• D) new technological breakthrough
• E) large decrease in the price of oil

---

Definitions:

Conversion Ratio

The specific quantity of one asset or liability that can be exchanged for another, often used in the context of convertible securities.

Risk-free Rate

The estimated rate of profit for a no-risk investment, usually depicted by the earnings from government securities.

American Call

An option contract that gives the holder the right to buy a specific asset at a set price anytime before the expiration date.