Factors That Can Cause the Supply Curve for Bonds to Shift

question 76

Multiple Choice

Factors that can cause the supply curve for bonds to shift to the left include

• A) an expansion in overall economic activity.
• B) a decrease in expected inflation.
• C) an increase in government deficits.
• D) only A and C of the above.

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Definitions:

Receivables Turnover

A ratio that measures a company's efficiency in collecting its sales on credit over a period of time.

Accounts Receivable

Funds owed to a company by customers for products or services that have been delivered or used but not yet paid for.

Equity Multiplier

This financial ratio measures a company’s total assets financed by stockholders, indicating the leverage level relative to equity.

Debt-Equity Ratio

A measure of a company's financial leverage, calculated by dividing total liabilities by shareholders' equity.