Which Question Best Clarifies the Meaning of Validity

question 6

Multiple Choice

Which question best clarifies the meaning of validity?

• A) Has the test been taken by many people?
• B) Does the student know what is on the test?
• C) Does the test measure what it is supposed to measure?
• D) Is the test reliable?

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Definitions:

New Stock

Shares that are issued for the first time to the public by a company seeking to raise capital.

Indirect Method

A technique used in financial reporting to convert net income into net cash flow from operating activities, by adjusting for non-cash transactions.

Investment Bankers

Financial professionals who assist corporations and governments in raising capital by underwriting and issuing securities and advising on mergers and acquisitions.

Financial Intermediation

The process by which financial institutions act as intermediaries between lenders and borrowers.