An Analyst Constructs a Moving Average Line in Order To

question 16

Multiple Choice

An analyst constructs a moving average line in order to:

• A) forecast future cash earnings of a company.
• B) analyse support and resistance lines.
• C) smooth out erratic price movements.
• D) work out the efficiency of the market.

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Definitions:

Investment Tax Credit

A tax incentive that allows businesses to deduct a certain percentage of their investment in certain assets from their tax liability.

Deficit to Surplus

The process of turning a budget deficit into a surplus by increasing revenues, decreasing expenditures, or a combination of both.

Tax Laws

The legal rules and regulations governing how individuals and entities are taxed by governmental authorities.

Loanable Funds Traded

The marketplace for borrowing and lending, where loanable funds are exchanged, often involving financial institutions, with rates influenced by supply and demand.