Declines in the stock market can affect the fiscal health of colleges and universities.Which of the following is the least likely reason for that?
A)Reduction in endowment income.
B)Decrease in demand for university scholarship funds.
C)Reduced ability of parents and students to pay tuition.
D)Decrease in donors' willingness and ability to make contributions.

Question

Quizplus · Accepted Answer

Declines in the stock market may lead to reduction in endowment income, reduced ability of parents and students to pay tuition, and decrease in donors' willingness and ability to make contributions. However, a decrease in demand for university scholarship funds is unlikely to be directly affected by stock market declines. In fact, it may see an increase in demand as more students seek financial assistance due to economic hardship caused by the stock market decline.

Declines in the Stock Market Can Affect the Fiscal Health