You Recently Heard a News Announcer State That the Market

question 72

Multiple Choice

You recently heard a news announcer state that the market is approaching its support level.Which one of the following is the best interpretation of that statement?

• A) The market is approaching the lowest level that is reasonably expected.
• B) The federal government will step in to help the market retain its value should the market slip much further.
• C) The market is almost at a peak and is expected to start declining in the near future.
• D) The market is almost to the point where trading will be suspended temporarily.
• E) The market is almost equivalent in value to the international markets so price stabilization is expected.

---

Definitions:

Effective Annual Rate

The interest rate on an investment or loan, calculated annually, that takes into account the effects of compounding.

Simple Interest

Interest calculated only on the original principal and paid only at the maturity date.

GICs

Guaranteed Investment Certificates, a type of Canadian investment that offers a guaranteed rate of return over a fixed period.

Purchasing Power

The value of currency expressed by the amount of goods or services that one unit of money can buy.