Most Students Expect That If They Spend More Time Studying

question 102

Multiple Choice

Most students expect that if they spend more time studying, the outcome will be improved grades in the course. This supposes that:

• A)​a positive relationship exists between studying and grades.
• B)​a negative relationship exists between studying and grades.
• C)​grades are independent variables.
• D)​grades are not dependent variables.

---

Definitions:

STRIPS

Separate Trading of Registered Interest and Principal of Securities; a form of a bond that separates its interest payments from its principal repayment obligation, enabling investors to hold and trade them separately.

Expectations Theory

A theory related to the term structure of interest rates, suggesting that the long-term interest rates reflect expected future short-term interest rates.

Forward Rate

The agreed-upon exchange rate for a currency, security, or commodity to be delivered and paid for at a future date, used in forward contracts.

Zero-coupon Bonds

Bonds that are issued at a discount to their face value and do not pay interest during their life but are redeemed at full face value at maturity.