Technicians Using the Confidence Index Published by Barron's to Make

question 142

Multiple Choice

Technicians using the confidence index published by Barron's to make investment decisions

• A) believe the ratio is a bullish indicator because during periods of high confidence investors will invest in higher quality bonds.
• B) believe the ratio is a bearish indicator because during periods of high confidence investors will invest in higher quality bonds.
• C) believe the ratio is a bearish indicator because during periods of high confidence investors will invest in lower quality bonds.
• D) believe the ratio is a bullish indicator because during periods of high confidence investors will invest in lower quality bonds.
• E) believe the ratio is a bullish indicator because during periods of high confidence investors will not invest in bonds.

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Definitions:

Reserves

Funds set aside by a company to cover future obligations, losses, or unforeseen expenses.

Accumulated Profits and Losses

The net total of all a company's profits and losses over its lifetime, not distributed as dividends.

Treasury Stock Transaction

The acquisition or reissuance of shares by a company, which may affect shareholders' equity but do not count as assets on the balance sheet.

Cost Method

An accounting method used to record investments where the investment is recorded at cost and is not adjusted for increases or decreases in the value of the underlying asset, except to reflect impairments.