Which of These Statements Is True

question 88

Multiple Choice

Which of these statements is true?

• A) When people purchase a stock, they know exactly what their dollar and percent return are going to be.
• B) Many people purchase stocks as they find comfort in the certainty for this safe form of investing.
• C) When people purchase a stock, they know the short-term return, but not the long-term return.
• D) When people purchase a stock, they do not know what their return is going to be-either short term or in the long run.

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Definitions:

Supply

A relation between the price of a good and the quantity that producers are willing and able to sell per period, other things constant.

Demand

Refers to the quantity of a good or service that consumers are willing and able to purchase at various price levels over a given period of time.

Interest Rate

The percentage charged on borrowed money or paid on savings accounts, essentially the cost of borrowing money or the reward for saving.

Loanable Funds

The total amount of capital available in the financial markets for borrowing, influenced by savings and investments.