Investments in Commodities and Options Are All of the Following

question 3

Multiple Choice

Investments in commodities and options are all of the following except

• A)are more speculative investments
• B)usually stress immediate returns
• C)usually stress long-term growth
• D)are higher risk than GICs
• E)are higher risk than common stocks

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Definitions:

Wealth Effect

The wealth effect is the change in consumer spending and economic behavior resulting from changes in perceived wealth, typically due to asset price variations.

Aggregate-Demand Curve

A curve that represents the total demand for all goods and services in an economy at various price levels.

Liquidity Preference Theory

is the hypothesis that investors prefer to have liquid rather than illiquid assets and will demand higher yields for longer-term securities that are less liquid.

Aggregate Demand Curve

A graph showing the total demand for goods and services within an economy at different price levels.