If There Is a Causal Relationship Between Two Variables X

question 69

Multiple Choice

If there is a causal relationship between two variables X and Y,

• A)both should be used as explanatory variables.
• B)then the causal variable should be used as the explanatory variable.
• C)then they must be positively correlated.
• D)one of them can be omitted from the analysis.

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Definitions:

Refunds a Debt Issue

The process where an issuer returns investors' capital for a debt instrument before its maturity, often relating to a callable bond or similar financial product.

Call Provision

A clause in a bond's contract that allows the issuer to redeem the bond before its maturity date, typically at a predetermined price.

Bondholders

Individuals or entities that own bonds issued by corporations or governments, entitling them to receive the bond's face value at maturity and periodic interest payments.

Going Public

The process of a private company offering its shares to the public for the first time through an initial public offering (IPO).