Newton's 3ʳᵈ Law of Motion States That

question 25

Multiple Choice

Newton's 3ʳᵈ Law of Motion states that

• A) action and reaction are equal and opposite
• B) force equals mass times acceleration
• C) an object moves at a constant velocity unless a force acts
• D) the force of gravity decreases with increasing distance

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Definitions:

Interest Rate

An interest rate is the percentage of principal charged by the lender for the use of its money, or the rate earned on deposited funds.

Futures Contracts

Legally binding arrangements to engage in the buying or selling of a designated financial asset or commodity at a price established in advance, to be executed at a designated future time.

Price Risk

This refers to the possibility of an investor experiencing losses due to changes in the market price of a security.

Hedge

Hedging involves making an investment to reduce the risk of adverse price movements in an asset, typically by taking an offsetting position in a related security.