If There Is a Direct Relationship Between Two Variables

question 107

Multiple Choice

If there is a direct relationship between two variables,

• A) the slope of the line or the slope of a tangent line to the curve) will be negative.
• B) the graph of the relationship will be upward-sloping.
• C) the graph of the relationship will be downward-sloping.
• D) Both answers A and C are correct.

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Definitions:

Securities Act

A U.S. law enacted in 1933 that governs the sale of securities, aiming to provide investors with transparent information and to prevent fraud.

New Securities

Financial instruments that have been newly issued to investors, usually referring to stocks or bonds that have just been offered to the public or private investors.

Electronic Trading Systems

Platforms that facilitate the trading of financial securities, commodities, and other assets using electronic networks and computers.

High-frequency Traders

Investors who use powerful computers to execute large numbers of trades at very fast speeds, often attempting to exploit small price differences.