You Could Reduce the Size of Your Monthly Payments by

question 15

Multiple Choice

You could reduce the size of your monthly payments by

• A)agreeing to a higher interest rate.
• B)borrowing the same amount of money but for a shorter period of time.
• C)borrowing more money initially for the same period of time.
• D)lengthening the maturity.

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Definitions:

Concurrent Validity

The extent to which test scores correlate with scores on an established test of the same skill or knowledge area, taken at the same time.

Discriminant Validity

A measure of the degree to which a test or tool is capable of distinguishing between different constructs or phenomena.

Construct Validity

The extent to which a test accurately measures the theoretical, non-observable construct or trait it is intended to assess.

Correlation

A statistical measure that describes the extent to which two variables change together.