World Wide Delivery Service Corporation Develops a Way to Speed

question 89

Multiple Choice

World Wide Delivery Service Corporation develops a way to speed up its deliveries and reduce its costs. Which of the following would we expect?

• A)This would raise the demand for existing shares of the stock, causing its price to rise.
• B)This would decrease the demand for existing shares of the stock, causing its price to fall.
• C)This would raise the supply of the existing shares of stock, causing its price to rise.
• D)This would raise the supply of the existing shares of stock, causing its price to fall.

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Definitions:

Arbitrageurs

Traders who attempt to profit by exploiting price differences of identical or similar financial instruments on different markets or in different forms.

Exchange Rate

The price of one currency in terms of another currency for conversion.

Currency

A system of money in general use in a particular country or region, serving as a medium of exchange, unit of account, and store of value.

Arbitrageur

Someone who takes advantage of tiny differences in the exchange rate across markets by simultaneously purchasing a currency in one market and selling it in another market.