The Ledger Is

question 38

Multiple Choice

The ledger is:

• A)a group of accounts that records data from business transactions.
• B)a tool used to insure that all accounts have normal balances.
• C)a chronological record of the day's transactions.
• D)a tool used to ensure that debits equal credits.

---

Definitions:

Arbitrage Opportunity

The chance to buy an asset at a low price in one market and simultaneously sell it at a higher price in another, securing a risk-free profit.

Long-short Equity Fund

A type of investment fund that takes both long and short positions in stocks, aiming to profit from increases in the prices of some stocks and decreases in the prices of others.

Risk-free Rate

The theoretical rate of return on an investment with zero risk, typically represented by U.S. Treasury securities.

Modified Duration

A measure of a bond's price sensitivity to changes in interest rates, taking into account the bond's yield, coupon, and time to maturity.