Which of the Following Could Be Considered an Example of Forced

question 18

Multiple Choice

Which of the following could be considered an example of forced reinvestment if the blockage of funds was expected to be temporary?

• A) vertical reinvestment by an automobile manufacturer to buy parts suppliers and showrooms
• B) a lumber cutting company subsequently builds a paper mill with blocked funds
• C) purchase of local money market instruments and short-term loans
• D) all of the above

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Definitions:

Inferior

Considered lower in status, quality, or importance compared to others.

Outgroup Homogeneity Effect

cognitive bias referring to the tendency to see members of an outgroup as more similar to each other than members of one's ingroup.

Similar

Having traits or characteristics in common; alike in substance or essentials.

Individuals

Separate and distinct entities often referenced in the context of discussing unique persons or single members of a group.