If There Is a Linear Relationship Between Two Variables, Then

question 100

Multiple Choice

If there is a linear relationship between two variables, then a change in one variable must be accompanied by __________ in the other variable.

• A) no change
• B) an exactly proportional change
• C) a larger change
• D) a disproportionally inverse change
• E) a smaller change

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Definitions:

Collateralized Borrowing

A loan that is secured by collateral, meaning if the borrower defaults, the lender has the right to seize the asset(s) pledged as collateral.

Surrenders Control

In accounting or finance, refers to the act of a party giving up the authority or power over an asset or decision-making to another party.

Securitization

The financial process of pooling various types of contractual debt, such as mortgages or loans, and selling them as consolidated financial instruments to investors.

Securities Not Collateralized

Financial instruments or investments that are not backed by a physical asset or security, making them potentially riskier for investors since there is no guarantee of repayment through asset seizure.