Which of the Following Is False

question 20

Multiple Choice

Which of the following is false?

• A)In a rising stock market, buying on the margin makes investment more profitable than it otherwise would be.
• B)When an investor uses borrowed funds to purchase stock, the lender may put in a margin call that requires the investor to put up more funds at any time.
• C)If the investor fails to meet a margin call, the stock is sold for the lender to recoup part or all of its losses.
• D)The selling of the stock to recoup losses when a borrower fails to meet a margin call puts additional downward pressure on the flagging stock price.

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Definitions:

Three Mile Island

Nuclear power plant near Harrisburg, Pennsylvania, site of 1979 accident that released radioactive steam into the air; public reaction ended the nuclear power industry’s expansion.

Nuclear Plant

A facility that generates electricity by using nuclear reactors to produce steam that drives turbine generators.

Energy Industry

The sector of the economy that encompasses the production, distribution, and sale of energy, including fossil fuels, nuclear power, and renewable energy sources.

Nixon Administration

The executive branch under President Richard Nixon, serving from 1969 to 1974, notable for significant events such as the Watergate scandal.