The Order Condition for Identification of an Equation Requires That

question 12

Multiple Choice

The order condition for identification of an equation requires that there should be _____.

• A)at least one exogenous explanatory variable in a structural equation
• B)at least as many excluded exogenous explanatory variables as there are included endogenous explanatory variables
• C)at least as many dummy variables in an equation as there are exogenous explanatory variables
• D)as many lagged independent variables in an equation as there are exogenous explanatory variables

---

Definitions:

Registered Bonds

are bonds whose ownership is recorded by the issuing company, ensuring that only the registered owner receives interest payments and the principal back.

Bearer Bonds

Bonds that are owned by the holder rather than a registered owner, and the physical possession of the bond is the only evidence of ownership.

Convertible Bonds

Bonds that can be converted into a predetermined number of the issuing company's shares, typically at the discretion of the bondholder.

Bond Ratings

A classification system that denotes the credit quality and perceived risk of bonds issued by corporations, municipalities, or sovereign entities.