A Five-Year Security Was Purchased Two Years Ago by an Investor

question 86

Multiple Choice

A five-year security was purchased two years ago by an investor who plans to resell it. The security will be sold by the investor in the so-called

• A)secondary market.
• B)primary market.
• C)deficit market.
• D)surplus market.

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Definitions:

Price

The amount of money or compensation exchanged for the ownership or use of a good or service.

Apples

A type of fruit that comes in various colors and flavors, commonly grown in temperate climates.

Perfect Complements

Goods that are consumed together in fixed proportions, such that the consumer regards them as inseparable in use.

Income Effect

The change in an individual's or economy's purchasing power generated by a change in income, affecting the quantity demanded of a good or service.