As a Result of Financial Deregulation

question 136

Multiple Choice

As a result of financial deregulation

• A)the IS curve became flatter and the LM curve became steeper,with the result that the interest rate became more volatile.
• B)the IS curve became steeper and the LM curve became flatter,with the result that the interest rate became more volatile.
• C)both the IS curve and the LM curve became steeper,with the result that the interest rate became more volatile.
• D)both the IS curve and the LM curve became flatter,with the result that the interest rate became more volatile.

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Definitions:

Stock Selection Return

The return achieved by an investor that can be attributed to the specific stocks chosen for investment, rather than the overall market movement.

Cross Border Fund

An investment fund that seeks to invest in assets located in countries other than where the fund is domiciled.

Benchmark

A standard or point of reference against which things may be compared or assessed, often used in investing to measure the performance of securities or portfolios.

Equity Index

A benchmark that measures the performance of a specific section of the stock market by tracking the price of selected stocks.