Judge the Following Sentence According to the Criteria Given Below

question 58

Multiple Choice

Judge the following sentence according to the criteria given below. Earth is long overdue for a magnetic reversal because during the past 15 million years Earth's magnetic field reversed every 200,000 years, on average, and the last reversal was 780,000 years ago.

• A) The assertion is correct but the reason is incorrect.
• B) The assertion is incorrect but the reason is correct.
• C) The assertion and the reason are both correct, and the reason is valid.
• D) The assertion and the reason are both correct, but the reason is invalid.
• E) Both the assertion and the reason are incorrect.

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Definitions:

Compounding

The process whereby interest is credited to an existing principal amount as well as to interest already paid, leading to exponential growth over time.

Investment

The allocation of resources (such as capital) to assets with the expectation of generating future profit or income.

Intrinsic Value

The actual value of a company or an asset based on underlying perceptions of its true value including aspects of both tangible and intangible factors.

Present

The current moment in time, often used as a reference point in discussions about time value of money.