The Wealth of Most People Declined as a Result of the Financial

question 13

Multiple Choice

The wealth of most people declined as a result of the financial crisis of 2007-2009. As a result, which asset was most likely became a larger portion of their portfolio?

• A)bonds
• B)stocks
• C)house
• D)checking account

---

Definitions:

Net Sales

Revenue from goods or services sold minus returns, allowances, and discounts.

Return On Equity (ROE)

A measure of financial performance, calculated by dividing net income by shareholder equity, indicating how well a company uses investments to generate earnings growth.

Interest Expense

The cost incurred by an entity for borrowed funds over a period, typically noted on the income statement.

Income Taxes

Taxes imposed by the government on the income earned by individuals and businesses within its jurisdiction.