One valuable lesson investors should learn from the stock market behavior during the late 1990s and early 2000s is that the Fed:
A. can control the stock market.
B. cannot prevent a stock market decline.
C. can reduce the idiosyncratic risk of investing but not the systematic risk.
D. can eliminate the risk from investing.
Answer: B
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Copyrights, which grant special privileges to artists, musicians, and writers
A) destroy property rights. B) expand property rights. C) neither destroy nor expand property rights because they are part of the Bill of Rights. D) both destroy and expand property rights.
Foreign direct investment is:
A. investment that occurs when a firm runs its operation domestically, and sells its product abroad. B. when foreign companies buy and operate physical capital within the United States. C. when foreign companies buy physical capital from the United States. D. investment that occurs when a firm runs part of its operation abroad or invests in another company abroad.