Investing in Financial Instruments in Today's Economy

question 28

Multiple Choice

Investing in financial instruments in today's economy:

• A)Is an activity practiced only by the wealthy
• B)Involves costly transactions
• C)Requires a relatively large sum of money to invest (more than $100,000)
• D)Is made easier by the use of mutual funds

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Definitions:

Ordinal Scale

The scale of measurement for a variable if the data exhibit the properties of nominal data and the order or rank of the data is meaningful. Ordinal data may be nonnumeric or numeric.

Interval Scale

The scale of measurement for a variable if the data demonstrate the properties of ordinal data and the interval between values is expressed in terms of a fixed unit of measure. Interval data are always numeric.

Ratio Scale

The scale of measurement for a variable if the data demonstrate all the properties of interval data and the ratio of two values is meaningful. Ratio data are always numeric.

Nominal Scale

The scale of measurement for a variable when the data are labels or names used to identify an attribute of an element. Nominal data may be nonnumeric or numeric.