The Fact That the Supply Curve for a Given Firm's

question 95

Multiple Choice

The fact that the supply curve for a given firm's bond is vertical reflects the fact that

• A)at any given point in time there are a fixed number of those bonds in existence.
• B)firms adjust the number of bonds they issue on a daily basis
• C)investors do not adjust their portfolios when interest rates change
• D)government limits the amount of bonds a company can issue

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Definitions:

Foreign Exchange Market

A worldwide platform for trading one country's currency for another.

Resource Market

A market where resources (such as labor, capital, and raw materials) required for the production of goods and services are bought and sold.

Bond Market

A financial market where participants can issue new debt, known as the primary market, or buy and sell debt securities, known as the secondary market, including government bonds, corporate bonds, and other types of debt instruments.