Factors Affecting Demand for Assets Quiz
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Questions and Answers

What is the main factor that drives the price of shares up?

  • Company success and increased demand (correct)
  • Decreased demand
  • Selling of shares in the market
  • Poor company performance

Which factor contributes to property increasing in value?

  • Decreased demand
  • Decreasing quality of the building
  • High mortgage rates
  • Location and unique features (correct)

What aspect can increase the value of collectibles?

  • High demand and rarity (correct)
  • Decreased rarity
  • Decreased condition
  • Common trends

Why do people buy assets according to the text?

<p>To increase utility and value (A)</p> Signup and view all the answers

How does appreciation of an asset occur?

<p>When demand surpasses supply (A)</p> Signup and view all the answers

What influences asset appreciation according to the text?

<p>Rarity and uniqueness (A)</p> Signup and view all the answers

Which of the following assets is likely to have the highest liquidity?

<p>Shares (A)</p> Signup and view all the answers

For an asset to grow in value, what must be true about supply and demand?

<p>Demand must be higher than supply (A)</p> Signup and view all the answers

What is the primary reason an investor would prefer an asset with high liquidity?

<p>To access funds quickly or exit investments when needed (B)</p> Signup and view all the answers

Which of the following assets is likely to have the highest maintenance costs?

<p>Property (D)</p> Signup and view all the answers

What is the primary factor that determines the utility of an asset?

<p>The benefits it provides to the owner and the world (D)</p> Signup and view all the answers

Which of the following assets is likely to have the highest liquidity?

<p>Shares of a publicly-traded company (A)</p> Signup and view all the answers

An increase in demand for an asset, with no change in supply, will typically lead to:

<p>An increase in the asset's price (C)</p> Signup and view all the answers

Which of the following assets is likely to have the highest maintenance costs?

<p>A residential property (C)</p> Signup and view all the answers

An increase in supply of an asset, with no change in demand, will typically lead to:

<p>A decrease in the asset's price (D)</p> Signup and view all the answers

Which factor is least likely to influence the demand for an asset?

<p>The asset's color or appearance (A)</p> Signup and view all the answers

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