Which of the Following Is Correct

question 223

Multiple Choice

Which of the following is correct?

• A)The asset demand for money is downward sloping because the opportunity cost of holding money declines as the interest rate rises.
• B)The asset demand for money is downward sloping because the opportunity cost of holding money increases as the interest rate rises.
• C)The transactions demand for money is downward sloping because the opportunity cost of holding money varies inversely with the interest rate.
• D)The asset demand for money is downward sloping because bond prices and the interest rate are directly related.

Comprehend the importance of cross-cultural fairness and practicality in testing and assessment.

Understand the significance of content, concurrent, and construct validity in the evaluation of test effectiveness.

Recognize the role of correlation in assessing the relationship between test scores and other variables.

Know the steps involved in selecting, administering, and evaluating the effectiveness of tests.

---

Definitions:

Analytic Thought

A cognitive process that involves breaking down complex information or problems into smaller, more manageable parts to understand and solve them.

Intuitive Thought

A cognitive process that involves knowing or understanding something without the involvement of rational or logical thinking.

Egocentrism

A cognitive trait where an individual has difficulty understanding or assuming any perspective other than their own.

Social Warmth

A feeling of genuine friendliness and acceptance conveyed by individuals or groups.