When Asset Prices Increase Above Their Fundamental Values It Is

question 80

Multiple Choice

When asset prices increase above their fundamental values it is called an

• A)asset-price bubble.
• B)irrational bubble.
• C)asset-price spike.
• D)irrational spike.

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Definitions:

Instrument

A legal document formally recording a right, liability, or transaction.

Payment

The act of providing money or other compensation to fulfill a transaction or obligation.

Order Paper

A financial or legal document that is payable to the holder or the individual whose name appears on the document.

Endorsed

Officially approved or recommended; in finance, it refers to signing the back of a negotiable document to make it payable to someone other than the stated payee.