The Key Reason That the Bursting of the Tech-Stock Bubble

question 39

Multiple Choice

The key reason that the bursting of the tech-stock bubble of the late 1990s had a mild impact on the macroeconomy is ________.

• A) rapid intervention by the central bank averted economic catastrophe
• B) the increase in tech-stock prices was driven by the economic fundamental of technological progress
• C) the technology sector is a rather small portion of the aggregate economy
• D) financial institutions were not heavily invested in tech stocks

---

Definitions:

Accrued Salaries

Salaries that have been earned by employees but have not yet been paid by the company.

Adjust Account Balances

The process of updating ledger accounts at the end of a period to reflect accurate financial information for reporting.

Balance Sheet

A financial statement that displays a company's financial position at a specific point in time, showing assets, liabilities, and shareholders' equity.

Revenues

The total income generated by a company from its business activities, such as the sale of goods or services, before any expenses are subtracted.