When a Security Becomes Worthless

question 62

Multiple Choice

When a security becomes worthless
I.no loss can be deducted because a realization has not occurred.
II.the measure of the loss is the adjusted basis of the securities.
​

• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

---

Definitions:

Ideology

A systematically interrelated set of beliefs whose primary function is explanation. It circumscribes thinking, making it difficult for the holder to escape from its mould.

Paradigm

A distinct set of concepts or thought patterns, including theories, research methods, postulates, and standards for what constitutes legitimate contributions to a field.

Acquiescent Response Set

Tendency to agree with items in an attitude questionnaire. This leads to an ambiguity in interpretation if a high score on an attitude questionnaire can be obtained only by agreeing with all or most items.

Mere Exposure Effect

A mental effect where people start liking things simply because they know them well.