A Decrease in the Fair Market Value of a Security

question 63

Multiple Choice

A decrease in the fair market value of a security that has not yet been realized through an actual sale of the security is called a(n) :

• A)Contingent loss
• B)Realizable loss
• C)Unrealized loss
• D)Capitalized loss
• E)Market loss

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Definitions:

Complementary Goods

Products or services that are used together, where an increase in demand for one leads to an increase in demand for the other.

Substitute Goods

Products or services that can be used in place of each other by consumers.

Price of Oil

The amount of money required to purchase a barrel of oil, influenced by global supply and demand, geopolitical events, and other factors.

Natural Gas

Natural gas is a fossil fuel consisting mainly of methane and other hydrocarbons, used as a source of energy for heating, cooking, and electricity generation.