The American Association of Retired Persons (AARP)provides Checklists Summarizing the Voting

question 60

Multiple Choice

The American Association of Retired Persons (AARP) provides checklists summarizing the voting and attendance records of legislators.Which of the following is true?

• A)If the AARP's members were rational, it wouldn't have to do this.
• B)This policy is useless if AARP members are rationally ignorant.
• C)This policy is intended to reduce voters' rational ignorance by decreasing the cost of information.
• D)If AARP members read this information, their rational ignorance would be eliminated.
• E)If all voters in the nation read this information, their rational ignorance would be eliminated.

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Definitions:

Call Option

A financial contract that gives the holder the right, but not the obligation, to buy an underlying asset at a specified price within a specific time period.

Cash Flow Hedge

A financial strategy to manage the risk of cash flow fluctuations due to changes in the value of underlying assets or liabilities.

Option Expense

The cost associated with granting options, such as stock options to employees, which is recognized as an expense over the vesting period.

Fair Value Hedge

A hedge that protects against changes in the fair value of an asset or liability or an unrecognized firm commitment.