An Issue with Mark-To-Market Accounting When There Is a Highly

question 14

Multiple Choice

An issue with mark-to-market accounting when there is a highly depressed market is that

• A) depressed values could be only temporary, portfolios are likely to re-gain value, and thus current unrealized losses are overstated.
• B) depressed values could be not only temporary, portfolios are likely to re-gain value, and thus current losses are overstated.
• C) depressed values could be only temporary, portfolios are not likely to re-gain value, and thus current losses are understated.
• D) depressed values could be only temporary, portfolios are not likely to re-gain value, and thus current non-realized gains are overstated.
• E) depressed values could be only temporary, portfolios are likely to re-gain value, and thus current non-realized losses are understated.

---

Definitions:

Emotion

A response of the whole organism, involving (1) physiological arousal, (2) expressive behaviors, and (3) conscious experience.

Prosopagnosia

An impairment in the brain preventing the recognition of faces, often termed as face blindness.

Emotion

Complex psychological states involving three distinct components: a subjective experience, a physiological response, and a behavioral or expressive response.

Absolute Thresholds

The minimum intensity of stimulation that must occur before you experience a sensation, varying across sensory modalities.