A bond is a financial security that represents a promise to repay
A) a yearly interest payment only.
B) a yearly principal payment only.
C) a yearly interest payment and a principal payment.
D) Bonds are investments that do not promise any kind of repayment.
Answer: C
You might also like to view...
Governments prefer to avoid excessive current account surpluses because
A) the returns to domestic savings are more difficult to tax than those on assets abroad. B) an addition to the home capital stock may increase domestic unemployment and therefore lead to higher national income. C) foreign investment in one firm may have beneficial technological spillover effects on other foreign producers that the investing firm does not capture. D) an addition to the home capital stock may reduce domestic unemployment and therefore lead to higher national income. E) domestic savings increase with more investment abroad.
Assume that the M1 multiplier is 2.5. If the Federal Reserve purchases $200 worth of government securities, the money supply will
A) rise by $200. B) rise by $500. C) fall by $200. D) fall by $500.