Dr Numbers Passed Back an Exam and Announced to the Class

question 107

Multiple Choice

Dr. Numbers passed back an exam and announced to the class that the mean,the median,and the mode of the scores were equal. This means that

• A)the scores formed a normal curve.
• B)the distribution had a large standard deviation.
• C)the students did very well on the exam.
• D)all of these statements are true.

---

Definitions:

Real Interest Rates

The interest rate adjusted for inflation, reflecting the true cost of borrowing and the true yield on savings.

Inflation Adjustments

Modifications made to financial statements or figures to account for the effects of inflation, ensuring values are represented in consistent purchasing power.

Liquidity Risk

The risk that an asset cannot be sold or converted into cash quickly enough to meet short-term financial obligations without a significant loss in value.

Bond

A fixed income instrument that represents a loan made by an investor to a borrower (typically corporate or governmental) which pays periodic interest payments and the return of the principal at maturity.