All of the Following Are True Regarding Stock Prices, Except

question 102

Multiple Choice

All of the following are true regarding stock prices, except they

• A) are influenced by supply and demand.
• B) are regulated by the Federal Reserve Board.
• C) have no set limit.
• D) generally increase with good financial news.

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Definitions:

Opportunity Costs

The price paid for not selecting the immediate alternative choice during decision-making.

Collection Float

The time period between when a check is deposited into a bank account and when the funds are available for use, affecting the cash flow of a business.

Net Float

The difference between checks written against a checking account and those that have been cleared by the bank.

Net Collection Float

The net collection float is the time difference between when a check is deposited into a bank account and when the funds become available for use, essentially measuring the delay in bank processing.