Technicians Using the Confidence Index Published by Barrons to Make

question 24

Multiple Choice

Technicians using the confidence index published by Barrons 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 ration is a bearish indicator because during periods of high confidence investors will invest in lower quality bonds.
• D) Believe the ration is a bullish indicator because during periods of high confidence investors will invest in lower quality bonds.
• E) None of the above.

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Definitions:

Common Stock

A type of security representing ownership in a corporation, giving holders a share of profits in the form of dividends and voting rights in corporate matters.

Liability Accounts

Financial obligations or debts of a business that are recorded on its balance sheet.

Asset Accounts

These accounts record resources owned or controlled by a company that have economic value and can provide future benefits.

Debit Side

The left side of a T-account, used for recording increases in assets and expenses or decreases in liabilities, equity, and income.