A call provision allows the issuer to ________
A) reduce the interest rate of the bond
B) change the face value of the bond
C) repurchase the bond before maturity
D) downgrade the status of the bond
E) change the coupon rate of the bond
Answer: C
Explanation: A call provision means that the issuer has the right to call, or repurchase, the bond before maturity. Call provision exists for preferred stocks also.
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Anthony would like to have his brokerage firm handle more of his financial needs because he has been pleased with the service provided when he bought and sold stocks and bonds. If he explores the services offered by such firms in more depth, he will find that
A. brokerage firms are becoming serious competitors for banks and other depository institutions by offering high-yield combination savings and checking accounts and money market accounts, as well as certain types of loans. B. although brokerage firms offer attractive banking services, federal law prohibits individual investors from holding both a checking account and a securities account with the same firm. C. although brokerage firms can offer some banking services, they typically are less efficient at providing them than banks, because they specialize in buying and selling securities. D. federal laws prohibit brokerage firms from competing with banks, savings and loan associations, and credit unions.
Which of the following does not require an activity that provides services for a user fee to be reported in an Enterprise Fund?
a. Net revenues are pledged as the sole security for debt issued to finance the activity b. Laws or regulations require the activity to recover its costs, including capital costs c. Pricing policies require the activity to recover its costs, including capital costs d. The main source of revenue for the activity is charges to external users