Which Type of Scale Has All the Properties of an Interval

question 7

Multiple Choice

Which type of scale has all the properties of an interval scale with the additional attribute of representing absolute quantities, characterized by a meaningful absolute zero?

• A) nominal scale
• B) discrete scale
• C) infinite scale
• D) ratio scale

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Definitions:

Leverage Ratio

A financial metric measuring the amount of debt used by a company to finance its assets relative to the value of those assets.

Insolvent

Insolvent refers to the inability of an individual or organization to meet its financial obligations as they become due, due to a lack of sufficient assets.

Reserve Requirements

Regulations set by the central bank determining the minimum amount of reserves each bank must hold against deposits.

Fed

The Federal Reserve System, which is the central banking system of the United States responsible for monetary policy.