Follow All of the Following for Constructing Multiple-Choice Items EXCEPT

question 3

Multiple Choice

Follow all of the following for constructing multiple-choice items EXCEPT

• A) design each item to measure an important learning outcome
• B) put as little wording as possible in the stem of the item
• C) state the stem of the item in positive form whenever possible
• D) insure each item is independent of other items in the test

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Definitions:

Nominal Interest Rate

The interest rate in terms of nominal (not adjusted for purchasing power) dollars.

Coupon Rate

A bond’s interest payments per dollar of par value.

Expected Rate of Inflation

An estimate of the rate at which the general level of prices for goods and services will rise over a period.

Annual Real Rate

The annual rate of return on an investment, adjusted for inflation, indicating the real increase in the value of the investment over a year.