Which of the Following Is True Regarding the Resistance Level

question 4

Multiple Choice

Which of the following is true regarding the resistance level?

• A) Resistance levels tend to develop due to profit taking.
• B) It is the level at which a significant decrease in demand is expected.
• C) It is the level at which a significant increase in supply is expected.
• D) Resistance levels usually develop after a stock reaches a new low.

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Definitions:

Prepaid Insurance

Payments made in advance for insurance services, which is recorded as an asset on the balance sheet and expensed over the period the insurance coverage is applicable.

Adjusting Journal Entry

An entry made in accounting records at the end of an accounting period to allocate income and expenditure to the correct period.

Insurance Premium

The amount of money an individual or business pays for an insurance policy, which provides financial protection against losses.

Accrual

An accounting method where revenue and expenses are recorded when they are earned or incurred, regardless of when the cash is received or paid.