If Two Variables Are Positively Related, Then

question 58

Multiple Choice

If two variables are positively related, then

• A) they move in opposite directions.
• B) they move in the same direction.
• C) their graph will have a negative slope.
• D) they are independent of each other.

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Definitions:

Trading Securities

Trading securities are investments in financial instruments that a company intends to sell in the short term with the aim of generating profit from short-term price fluctuations.

Available-For-Sale Securities

Available-for-sale securities are financial assets that a company intends to sell but is not obligated to do so, classified as neither held-to-maturity nor trading securities.

Held-To-Maturity Securities

Debt securities that a company intends and is able to hold until they mature.

Equity Method

An accounting method used to assess the investments made by a company in other companies, where the investment is significant but not controlling.