For a Causal Relationship to Exist There Must Be Evidence

question 25

Multiple Choice

For a causal relationship to exist there must be evidence

• A)of a relationship between variables.
• B)that one variable precedes the other in time.
• C)that a third variable did not cause the changes observed in the first two variables.
• D)all of these.

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Definitions:

S&P 500 Index

An index of the American stock market reflecting the value of 500 large-cap companies with shares available on either the NYSE or NASDAQ.

Open Interest

The total number of outstanding derivative contracts, such as options or futures, that have not been settled.

Clearinghouse Positions

The role of a clearinghouse in ensuring the settlement of transactions by acting as an intermediary between buyers and sellers in the financial markets.

Specified Delivery

A term used in futures contracts to denote the specific delivery specifications such as quality, quantity, and delivery location that must be met by the seller.