On August 8 of This Year, Brent Sold 500 Shares

question 21

Multiple Choice

On August 8 of this year, Brent sold 500 shares of ADO stock for $24 a share. On September 6 of this year, he purchased 500 shares of ADO stock to cover his position. The transaction on August 8:

• A)was a short sale.
• B)was a margin trade.
• C)was a wrap transaction.
• D)created a long transaction.
• E)was a pooling transaction.

---

Definitions:

Automatic Stabilizers

Changes in fiscal policy that stimulate aggregate demand when the economy goes into a recession without policymakers having to take any deliberate action

Budget Deficit

A situation where a government's expenditures exceed its revenues over a specific period of time.

Federal Reserve

The central bank of the United States, responsible for implementing monetary policy, supervising financial institutions, and providing services like clearing checks and distributing currency.

Aggregate

refers to the total amount or sum of individual parts in economics or finance.