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2 years ago

A market correction is defined as a stock market decline of 10% or more. a. true b. false

Business

1 answer:

bogdanovich [222]2 years ago

8 0

True, a market correction is defined as a stock market decline of 10% or more.

What Is a Correction?

In investing, a correction is usually defined as a decline of 10% or more in the price of a security from its most recent peak.

Corrections can happen to individual assets, like an individual stock or bond, or to an index measuring a group of assets.

An asset, index, or market may fall into a correction either briefly or for sustained periods—days, weeks, months, or even longer. However, the average market correction is short-lived and lasts anywhere between three and four months.

Investors, traders, and analysts use charting methods to predict and track corrections.

Many factors can trigger a correction. From a large-scale macroeconomic shift to problems in a single company's management plan, the reasons behind a correction are as varied as the stocks, indexes, or markets they affect.

To learn more about market: brainly.com/question/24204183

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Answer: c. increase the discount rate.

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When this rate is low, more financial institutions will borrow money as opposed to when it is high. Banks borrowing money increases the money supply in the economy so if the Federal Reserve wants to reduce money supply, it should increase the discount rate which would dissuade banks from borrowing from the Fed thereby limiting money supply.

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3 years ago

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3 years ago

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overstate.

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An unchanging basket of goods assumes that consumers are restricted from purchasing exactly the corresponding goods, without caring for changes of the price which are not a very likely hypothesis. <u><em>The result of substitution bias is that the increase in the price of a fixed basket of goods over time tends to</em></u> overstate the rise in the true cost of living of the consumer because it does not take into consideration that the person can substitute away from goods whose corresponding prices have increased.

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