If the S&P 500 Falls by 20 Percent, the NYSE

question 25

Multiple Choice

If the S&P 500 falls by 20 percent, the NYSE will:

• A)do nothing if the drop occurs after 2:30 P.M.
• B)halt trading for one hour.
• C)halt trading for one hour if the decline occurs before 3 P.M.
• D)halt trading for one-half hour if the decline occurs after noon.
• E)cease trading for the day.

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Definitions:

Fixed Cost

Expenses that do not change in total despite fluctuations in production or sales volume.

Mixed Cost

A cost consisting of both fixed and variable components and which is thus partially affected by changes in the level of activity.

Charitable Contribution

Monetary or in-kind donations given to charitable organizations, often eligible for tax deductions.

Sunk Cost

Expenses that were previously incurred and cannot be reclaimed.