Which of the Following Statements Is True Regarding Social Classes

question 51

Multiple Choice

Which of the following statements is true regarding social classes in the United States?

• A) Social class is determined by income alone.
• B) Lines between social classes in the United States are fixed and rigid.
• C) Social classes show distinct product preferences in clothing and automobiles.
• D) Wealth is more critical than education level in measuring social class.
• E) People are relegated to a permanent social class in the United States.

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Definitions:

Basis Points

One basis point is equal to 1/100th of 1%, used primarily to denote the change in interest rates, equity indexes, and the yield of fixed-income securities.

Price Decline

A decrease in the market price of an asset or security.

Duration

A measure of the sensitivity of the price of a bond or other fixed-income investment to a change in interest rates, often expressed in years.

Price Volatility

The rate at which the price of an asset increases or decreases for a given set of returns, indicative of the risk or stability.