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Author Question: What does it mean to cover a short? What will be an ideal ... (Read 81 times)

michelleunicorn

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  • Posts: 565
on: Jun 30, 2018
What does it mean to cover a short?
 
  What will be an ideal response?

Question 2

Which of the following increases money demand?
 
  A) Disruptions in the banking system.
  B) The introduction of online banking.
  C) The wider availability of ATMs.
  D) The introduction of deposit insurance.


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iceage

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Reply #1 on: Jun 30, 2018
Answer to Question 1

If the price of an asset in which an investor has a short position rises, the investor will incur losses by having to buy back the asset at a higher price than what it was sold for.

Answer to Question 2

A


michelleunicorn

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  • Posts: 565
Reply 2 on: Jun 30, 2018
YES! Correct, THANKS for helping me on my review

mjenn52

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  • Posts: 351
Reply 3 on: Yesterday
Great answer, keep it coming :)

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