An Example of a Buyer in a Financial Market Would

question 21

Multiple Choice

An example of a buyer in a financial market would be:

• A)families buying new houses.
• B)students paying for college.
• C)corporations building new factories.
• D)All of these are buyers in financial markets.

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Definitions:

Simple Interest

Interest calculated only on the principal amount, or on that portion of the principal amount which remains unpaid.

Savings Accounts

Bank accounts that earn interest over time, allowing individuals to deposit funds for future use.

Deposit

A sum of money placed in an account or paid as a part of a transaction to demonstrate commitment or reserve something.

Present Values

The valuation at the moment of money expected in the future or regular cash flows, when discounted using a certain rate of return.