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</p> Signup and view all the answers

    How does appreciation of an asset occur?

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

    What influences asset appreciation according to the text?

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

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

    <p>Shares</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</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</p> Signup and view all the answers

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

    <p>Property</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</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</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</p> Signup and view all the answers

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

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

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