Fundamental Analysts Primarily Base Their Investment Decisions on Analyses of Supply

question 93

True/False

Fundamental analysts primarily base their investment decisions on analyses of supply and demand relationships that influence trends in price movements in stocks and general financial market conditions.

---

Definitions:

Reserve Requirement

The minimum amount of reserves a bank must hold against deposits, set by the central bank, influencing the money supply and banking stability. A rephrased definition since "Required Reserves" is a similar concept.

Open Market Purchase

An activity by a central bank to buy securities in the open market to increase the money supply and stimulate economic growth.

Money Supply

The collective value of all cash, bank deposits, and liquid financial resources existing in an economy at a particular time.

Secondary Reserves

Assets that are highly liquid but not as liquid as primary reserves; they can quickly be converted into cash or other assets to meet financial obligations.