A Bar Magnet Is Dropped from Above and Falls Through

question 14

Multiple Choice

A bar magnet is dropped from above and falls through the loop of wire shown below.The north pole of the bar magnet points downward towards the page as it falls.Which statement is correct?

• A)The current in the loop always flows in a clockwise direction.
• B)The current in the loop always flows in a counterclockwise direction.
• C)The current in the loop flows first in a clockwise,then in a counterclockwise direction.
• D)The current in the loop flows first in a counterclockwise,then in a clockwise direction.
• E)No current flows in the loop because both ends of the magnet move through the loop.

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Definitions:

Stock Price

The cost of purchasing a share of a company's stock. The price at which a stock is traded on the market, representing the value investors assign to a company.

MM Model

The Modigliani-Miller theorem, proposing that in a perfect market, the value of a firm is unaffected by how it is financed, whether through debt or equity.

Financial Leverage

The use of borrowed funds with a fixed cost to enhance the potential return on investment.

Bankruptcy Risk

The risk that a company will be unable to meet its financial obligations and thus may have to declare bankruptcy.