A Bubble Is Defined to Be When

question 101

Multiple Choice

A bubble is defined to be when:

• A) an asset is not being traded very heavily.
• B) financial advisors purposely trying to deceive the public and sell a worthless asset.
• C) when the financial markets are trading an asset at much higher than historically justifiable prices.
• D) there are a limited number of buyers of an asset which causes the market to crash.

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Definitions:

Profit-Oriented Business

A business that operates with the primary goal of earning revenue in excess of its operating costs.

Deferral Method

An accounting technique that involves postponing the recognition of certain revenues or expenses until a later accounting period.

Programmatic Reporting

Reporting focused on the outcomes and impacts of programs, often related to policy or service implementations.

Endowment Contribution

A donation made to an organization with the stipulation that the principal is to remain intact in perpetuity or for a defined period, generating income for use.