If the Range of One or Both Variables Is Restricted,the

question 36

Multiple Choice

If the range of one or both variables is restricted,the resulting correlation coefficient will likely:

• A)be decreased.
• B)be icreased.
• C)remain the same.
• D)either increases or decrease depending on the calculations.

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Definitions:

LIBOR

The London Interbank Offered Rate, previously a benchmark interest rate at which major global banks lend to one another.

Bankers' Acceptances

Short-term debt instruments issued by a company that is guaranteed by a commercial bank, commonly used in international trade.

Brokers' Calls

The interest rate charged by banks on loans extended to brokerage firms for the purpose of funding clients' margin accounts.

Residual Claimant

An individual or entity entitled to a share of a company's assets only after all debts and other obligations have been met in the event of liquidation.