Technician a Replaces the Pads If the Linings Are Less

question 14

Multiple Choice

Technician A replaces the pads if the linings are less than 1/8 inch (3.175 mm) . Technician B says if the pad on one side of the caliper is worn more than the other side, the rotor has excess runout and must be replaced. Who is correct?

• A)A only
• B)B only
• C)both A and B
• D)neither A nor B

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Definitions:

Fundamental Risk

The risk associated with an underlying factor that affects all investments across the board, such as inflation or political instability.

Momentum Effects

The phenomenon where securities that have performed well in the past continue to perform well in the near future, and vice versa.

Resistance Level

The resistance level in trading is a price point above which a security or market is unlikely to rise, often leading to a sell-off when approached.

Support Level

A price level below which a stock or market rarely falls, representing a point where buying interest overcomes selling pressure.