A Scale That Allows One to Determine Only If There

question 69

Multiple Choice

A scale that allows one to determine only if there is more, less, or an equal amount of the attribute in comparison to another observation is called a(n) ____ scale.

• A)nominal
• B)ordinal
• C)interval
• D)ratio

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Definitions:

Market Interest Rates

The prevailing rates at which interest is paid on borrowings or earned on investments in the financial market.

Call Features

Provisions embedded in financial instruments, like bonds, that allow the issuer to repurchase or redeem the instrument before its maturity date.

Call Penalties

Fees or costs that a borrower must pay a lender for the privilege of paying a loan off earlier than the agreed payment schedule.

Call Premiums

The amount by which the price of a callable bond or preferred stock exceeds its par value or redemption price, often stipulated as a penalty for early redemption by the issuer.