Which of the Following Best Describes Credit Reports

question 76

Multiple Choice

Which of the following best describes credit reports?

• A) Organizations must advise and receive written consent from the applicant when they request a credit report.
• B) Organizations can request a report on any employee at any time without consent.
• C) Organizations do not have to inform applicants if adverse decisions are made based on information in the report.
• D) Organizations cannot make adverse decisions based on information in such a report.

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Definitions:

In-the-money

A term used in options trading to indicate that an option has intrinsic value, meaning it is profitable to exercise.

Intrinsic Value

The actual, fundamental value of an asset, based on underlying perceptions of its true value including all aspects of the business, in terms of both tangible and intangible factors.

Call Option

A financial contract giving the buyer the right, but not the obligation, to purchase a stock or other asset at a set price within a specific time period.

Hedge Ratio

A ratio used to measure the proportion of an investment's risk that is being mitigated by a hedge, aiming to reduce potential losses.