Which of the Following Is True About Index Numbers? Index

question 39

Multiple Choice

Which of the following is true about index numbers? Index numbers are:

• A) used to measure the trend component.
• B) used to measure the seasonal component.
• C) used to measure the cyclical component.
• D) used to make a relative comparison of different time periods.

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Definitions:

Stocks

Financial instruments that represent an ownership share in a corporation, entitling the holder to a proportion of the company's assets and profits, usually traded on stock exchanges.

Outstanding

Outstanding, particularly in context to shares, refers to the total number of shares of a corporation that have been issued and are held by investors, including restricted shares.

NASDAQ Composite Index

A stock market index that includes almost all stocks listed on the NASDAQ stock exchange, serving as a broad indicator of the performance of technology and biotech sectors.

Actively-Traded Stocks

Stocks that are frequently bought and sold in large volumes on stock exchanges, reflecting high investor interest and often associated with large companies.