Which of the Following Is a Positive Statement

question 298

Multiple Choice

Which of the following is a positive statement?

• A) State lotteries are good methods to use for raising revenues.
• B) Increased prison sentences are the best way to reduce the crime rate.
• C) An increase in gas prices leads people to car pool more.
• D) Inflation is a more serious problem than is deflation.

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Definitions:

Risk-Free Asset

An investment with a guaranteed return and no risk of default, often represented by government bonds from stable governments.

Strike Price

The predetermined price at which the holder of an option can buy (in the case of a call option) or sell (in the case of a put option) the underlying security or commodity.

Call

An option contract that gives the holder the right to purchase a stock, commodity, or other assets at a specified price within a specific time period.

Intrinsic Value

The fundamental value of a company, stock, currency, or product determined through financial analysis without reference to its market value.