In 2011,the Price of Peanuts Was Rising,which Lead Peanut Butter

question 472

Multiple Choice

In 2011,the price of peanuts was rising,which lead peanut butter sellers and peanut butter buyers to expect the price of peanut butter would rise in the future.Consequently,in the current market for peanut butter there was ________ which resulted in a ________ in the price of peanut butter and ________ in the quantity of peanut butter.

• A) a decrease in supply of peanut butter and an increase in demand for peanut butter; rise; an increase, decrease or possibly no change
• B) a decrease in supply of peanut butter and a decrease in demand for peanut butter; rise, fall, or possibly no change; a decrease
• C) an increase in supply of peanut butter and a decrease in demand for peanut butter; fall; an increase, decrease or possibly no change
• D) a decrease in supply of peanut butter and an increase in demand for peanut butter; fall; an increase, decrease or possibly no change

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Definitions:

Initial Margin

Initial Margin is the minimum amount of capital required to enter a position for trading in the securities market.

Borrowed

The act of receiving something with the promise to return it or its equivalent, often referring to funds obtained with the agreement to pay back with interest.

Common Stock

A type of security that represents ownership in a corporation, giving holders voting rights and a share in the company's profits via dividends.

Stop-Buy Order

An order placed with a broker to buy a security once it reaches a certain price, used to limit loss or protect profit.