Considering the Value of a Financial Instrument, the Bigger the Size

question 55

Multiple Choice

Considering the value of a financial instrument, the bigger the size of the promised payment the:

• A) less valuable the financial instrument because risk must be greater.
• B) longer an investor has to wait for the payment.
• C) more valuable the financial instrument.
• D) greater the risk.

---

Definitions:

Reduce

To decrease in size, quantity, or intensity, often in reference to waste management or minimizing resource consumption.

Social Readjustment

The process of adapting to significant changes in one's life, which can be a source of stress.

Vacation

A duration spent outside of one's home or workplace dedicated to resting, unwinding, or journeying.

Holmes And Rahe

Psychologists who developed a scale to measure stress based on major life events and their impact on an individual's health.