When the Financial Markets Become More Unstable and Unpredictable Than

question 94

Multiple Choice

When the financial markets become more unstable and unpredictable than normal,many professional investment managers shift their asset allocations from ____ to ____.

• A) stocks;short-term debt
• B) bonds;stocks
• C) stocks;derivatives
• D) bonds;derivatives

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Definitions:

Market Impact

refers to the effect that the buying or selling of a large quantity of a financial instrument has on the price of that instrument.

Government Program

Initiatives launched by the government aimed at addressing various social, economic, or environmental issues.

Subsidy

A financial contribution granted by the government or a public body to support businesses, lowering the cost of production or services.

Flu Shots

Vaccinations that protect against influenza, often administered annually to mitigate the impact of flu seasons.