Which of the Following Statements Is TRUE

question 47

Multiple Choice

Which of the following statements is TRUE?
I. The riskiest stocks tend to move in sync with the economy.
II. A relatively safe stock is one that does not vary much with the state of the economy.
III. Health care stocks are some of the riskiest stocks.

• A) III only
• B) I and II only
• C) II and III only
• D) I only

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Definitions:

Flexible System

An adaptable framework or methodology that can adjust to changes in environment or operation, often seen in production, management, or scheduling.

Major Currencies

The world's most widely traded currencies, typically including the US Dollar, Euro, Japanese Yen, and British Pound among others.

Managed Floating Exchange Rate

An exchange rate that is allowed to change (float) as a result of changes in currency supply and demand but at times is altered (managed) by governments via their buying and selling of particular currencies.

Central Banks

Financial institutions responsible for the oversight of the monetary system for a nation or group of nations, controlling policies like interest rates and money supply.