19
QuizMultiple Choice

Banking — Test

Question 19 • Financial Math

If the value of a stock is represented by 8^−2 , what does this represent in terms of its actual value using the rules for negative exponents?

Answer
A
1/8
B
1/64
C
64
D
1/16

Explanation

A negative exponent means take the reciprocal of the base raised to the positive exponent: 8⁻² = 1/(8²). Since 8² = 64, the value is 1/64, which is choice B.

AI-written and checked against the verified answer.

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