A Measurement That Is Inaccurate,but Consistently Reports the Same Results

question 24

Multiple Choice

A measurement that is inaccurate,but consistently reports the same results is

• A)valid.
• B)both valid and precise.
• C)not valid but precise.
• D)not precise but valid.
• E)neither valid nor precise.

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Definitions:

Financial Intermediary

An institution that pools investors’ money and invests it on their behalf giving the investors shares of itself. Mutual funds are the primary example.

Indirect Method

A way of calculating cash flows from operations by starting with net income and adjusting for changes in non-cash accounts.

Investment Banks

Financial institutions that assist individuals, corporations, and governments in raising capital, advising on mergers and acquisitions, and providing other financial services.

Certificate of Deposit

A savings certificate with a fixed maturity date, specified fixed interest rate, and can be issued in any denomination aside from minimum investment requirements.