There are two main theories that underpin financial economics, namely the theory of value and the theory of price direction. I am sure you have encountered the term ‘value’ in relation to financial markets already but what does it actually mean? Basically it is used to describe the difference between value-based assets and liabilities and the overall financial position.
The other term that you will come across a lot when you are taking a financial theory course or quiz is ‘prices’. These are simply terms used to describe the relative values of items such as shares, property, commodities etc. You will need to be able to explain this sort of thing in simple terms to take my financial theory IV quiz for me. I am sure you will need plenty of practice in order to get it right.
In terms of the theory of prices, there is also a great deal of detail about this. One theory that does bear thinking about is what is called the theory of demand. This is where there is a basic economic principle that says that we should only buy something if we need it badly. The great thing about this is that if you take my financial theory IV quiz for me, you will find that there is an example of this principle in the form of a supermarket.
In the above example, we have people queuing up to buy milk. They are not queueing up to buy fish and chips. Why? Well, because they need a good quality of milk and fish and chips are not available to them when they go to the shop. In this way, they will end up paying more for their items and this is how to take my financial theory IV quiz for me works.
When you take my financial theory IV quiz for me, you will find that there are some excellent quizzes that will help you work out whether your theory is right or wrong. One of the most popular ones is the barometer theory. This says that prices change depending on the performance of the national economic outlook. If you take my financial theory IV quiz for me, you will find that this is indeed correct. If you take it after the events of September 11, it said that there was a big increase in stock market crash prices and this made many believe that the economy had taken a hit.
But did it really? The truth is that the prices did not crash as predicted and in fact, they increased slightly. So it is possible to take my financial theory IV quiz for me and find out whether the economy faced serious problems or not. In the case of the events of September 11, many people believed that the world would come to an end and this made people panic. The number of deaths went up and the amount of loss and damage to property was also large. However, these things do not account for the fact that after taking these into account, stock market prices actually fell.
Stock markets have risen again since then. So does this prove that I am right about the theory that I am talking about? It certainly does not. There are many factors that affect the economy and stock prices are just one amongst them. You too can take my financial theory IV quiz for me so that you can find out for yourself.