The Decrease in the Price of Gasoline to a National

question 245

Multiple Choice

The decrease in the price of gasoline to a national average of less than $2.0 during the summer of 2016 was most likely a result of

• A) an increase in demand due to reduced summer driving.
• B) an increase in supply resulting from higher refinery output.
• C) an increase in demand due to increase in summer driving along with a decrease in supply resulting from reduced refinery output.
• D) an increase in supply resulting from higher refinery output along with a decrease in demand in summer driving.

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Definitions:

Asset Allocation

The strategy of distributing investments among various financial categories to manage risk and optimize returns.

Investment Committee

An investment committee is a group of professionals responsible for making decisions regarding the investment strategy of an organization or fund.

Passively Managed

Investment strategies that aim to replicate the performance of a specific index or benchmark as closely as possible, without active decision-making by managers.

Equity Index

A benchmark that represents the performance of a group of stocks, indicating the overall trend in the equity market.