Which Statement Is Correct

question 70

Multiple Choice

Which statement is correct?

• A)A held for trading security can be classified as cash.
• B)A held to maturity security cannot be classified as cash.
• C)A held for trading security can be classified as cash equivalent.
• D)A held for trading security cannot be classified as cash equivalent.

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Definitions:

Demand Curve

A graph showing the relationship between the price of a good and the quantity of the good that consumers are willing and able to purchase at various prices.

Elasticity

A measure of how much the quantity demanded or supplied of a good responds to a change in one of its determinants, such as price.

Inferior Goods

Goods for which demand decreases as the income of the consumer increases, opposite to normal goods.

Normal Goods

Goods for which demand increases as the income of consumers increases, and vice versa, holding all other factors constant.