Which Statement Is Correct

question 83

Multiple Choice

Which statement is correct?

• A) Heating always decreases the entropy of a system.
• B) The reaction that results in an increase in the number of moles of gas always decreases the entropy of a system.
• C) The greater number of particles leads to a smaller number of microstates.
• D) An increase in the temperature decreases all types of molecular motions.
• E) The solvation process usually leads to an increase in entropy.

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Definitions:

Initial Margin

The portion of the purchase price that an investor must deposit when buying securities on margin; serves as a down payment on the investment.

Maintenance Margin

The minimum amount of equity that must be maintained in a margin account after a purchase has been made, to keep the account open.

Long Futures Position

Holding a futures contract that obligates the buyer to purchase the underlying asset at a specified price on a specified future date, typically anticipating a price rise.

Levered Investment

Levered Investment involves using borrowed funds in addition to one's own investment capital to enhance the potential return of an investment.