Which of the Following Statements Is Not True

question 113

Multiple Choice

Which of the following statements is not true?

• A)When an investor buys stocks and assumes they will increase in value, he or she is using a procedure called buying long.
• B)Selling short is selling stock that has been borrowed from a stockbroker or brokerage firm.
• C)When you sell short, you buy today, knowing that you must sell or cover your short transaction at a later date.
• D)In a short transaction, if the stock increases in value, the investor loses money.
• E)To make money in a short transaction, you must be correct in predicting that a stock will decrease in value.

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Definitions:

Token Economy

A behavioral therapy method where desirable behaviors are reinforced with tokens that can be exchanged for rewards.

Old Behavior

Pre-established patterns of action that are familiar to an individual but may no longer be effective or desirable.

New Behavior

Actions or reactions that are newly acquired or displayed by an individual, differing from their previous behavior patterns.

Positive Reinforcement

A process by which the likelihood of a behavior's occurrence is increased by following it with a pleasant stimulus.