The Demand for an Asset Rises If ________ Falls

question 64

Multiple Choice

The demand for an asset rises if ________ falls.

• A) risk relative to other assets
• B) expected return relative to other assets
• C) liquidity relative to other assets
• D) wealth

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Definitions:

Fixed Amount

A specific sum of money that does not change over time or with use, often referring to payments or charges.

Payable

Refers to an amount of money that is owed and should be paid, often within a specific period of time.

Clarity

The quality of being easily understood or free from ambiguity.

Order Instrument

A negotiable instrument that is payable “to the order of an identified person” or “to an identified person or order.”