A Positive Statement Is

question 375

Multiple Choice

A positive statement is

• A) about what ought to be.
• B) about what is.
• C) the result of a model's normative assumptions.
• D) valid only in the context of a model with simple assumptions.

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Definitions:

Ownership Interests

Pertains to rights or claims individuals or entities have in an asset, potentially entitling them to income generated by the asset and a share in the asset's liquidation proceeds.

Nominal Rate

The stated interest rate of a financial instrument, not accounting for inflation or compounding effects.

Effective Rate

The actual interest rate on a loan or investment, taking into account the effects of compounding and other factors.

Face Rate

The interest rate stated on the face of a bond or a loan document, which determines the interest payments that the issuer will make.