What Does the Term Flight to Quality Refer To

question 71

Multiple Choice

What does the term flight to quality refer to?

• A) money flowing out of debt securities that are riskier than other investments.
• B) money flowing out of from debt securities that are safer than other investments.
• C) money flowing into debt securities that are riskier than other investments.
• D) money flowing into debt securities that are safer than other investments.
• E) an expensive NASA program.

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Definitions:

Business

An organization or enterprising entity engaged in commercial, industrial, or professional activities.

Journal

A detailed record where all financial transactions of a business are initially recorded before being transferred to accounts in the ledger.

Chart of Accounts

A systematic list of all account titles and numbers used by a company to organize its financial transactions and prepare financial statements.

Debits

Accounting entries that increase asset or expense accounts, or decrease liability, equity, or revenue accounts; they are recorded on the left side of accounting ledgers.