Which of the Following Are Arguments Against Market Value Accounting

question 72

Multiple Choice

Which of the following are arguments against market value accounting?

• A)It introduces a higher degree of stability into an FI's earnings.
• B)It is difficult to implement.
• C)FIs would be less willing to accept investments in shorter term assets.
• D)There are no arguments against market value accounting.

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Definitions:

Inelastic Demand

A market condition in which the demand for a product does not significantly change in response to a change in its price.

Less Elastic Demand

A situation where the demand for a product or service is relatively unresponsive to changes in price.

Economic Profits

The difference between total revenues and total costs, including both explicit and implicit costs, signaling the overall profitability from an economic standpoint.

Perfectly Inelastic

A situation in economics where the quantity demanded or supplied does not change in response to changes in price.