Which of the Following Is True About the Market for Capital

question 181

Multiple Choice

Which of the following is true about the market for capital?

• A) The demand for capital curve is upward sloping and the supply of capital curve is downward sloping.
• B) The supply of capital is perfectly elastic.
• C) The supply of capital curve is upward sloping and the demand for capital curve is downward sloping.
• D) The supply of capital curve is vertical and the demand for capital curve is downward sloping.
• E) None of the above answers is correct.

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Definitions:

Operating Segments

Elements of a corporation for which distinct financial data is obtainable, which the chief operating decision maker reviews routinely to determine resource allocation and to evaluate performance.

Reporting Tests

Procedures or checks utilized to ensure financial information is accurate, complete, and in compliance with regulations.

Quantitative Thresholds

Fixed numerical limits or criteria used to trigger certain actions or classify objects in financial and statistical contexts.

Operating Segments

Operating segments are components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision-maker in deciding how to allocate resources and in assessing performance.