Although Credit Permits More Immediate Satisfaction of Needs and Desires

question 15

Multiple Choice

Although credit permits more immediate satisfaction of needs and desires, it

• A)does increase total purchasing power.
• B)is always best to avoid credit purchases.
• C)does not diminish your ability to buy more goods and services on credit.
• D)has no opportunity costs attached to it.
• E)does not increase total purchasing power

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Definitions:

High P/E

Refers to a stock or market with a Price-to-Earnings ratio significantly above the average, often signaling high investor expectations.

Earnings Expectations

Predictions or forecasts about a company’s future earnings, often influencing stock prices and investor behavior prior to the actual earnings announcements.

Stock-price Expectations

Anticipated future prices of stocks based on market analysis, trends, and investor sentiment.

Trin Ratio

A market breadth indicator calculated by dividing the number of advancing stocks by the number of declining stocks, often used to gauge overall market sentiment.