If You Own 1,000 Shares of Stock and You Can

question 59

Multiple Choice

If you own 1,000 shares of stock and you can cast 5,000 votes for a particular director, then the stock features

• A)cumulative voting.
• B)straight voting.
• C)majority voting.
• D)proxy voting.

---

Definitions:

Monetary Neutrality

The concept that changes in the money supply only affect nominal variables and have no long-term impact on real variables like output or employment.

Nominal Interest Rate

The interest rate before adjustments for inflation, representing the rate stated on a loan or investment.

Real Interest Rate

The inflation-adjusted interest rate, showcasing the actual borrowing cost and the genuine return for lenders or investors.

Shoeleather Costs

The metaphorical cost of time and effort that people spend trying to counteract the effects of inflation, such as holding less cash and making more frequent trips to the bank.