Use the Following Statements to Answer This Question: I

question 151

Multiple Choice

Use the following statements to answer this question: I. Markets may be highly (but not perfectly) competitive even if there are a few sellers.
II) There is no simple indicator that tells us when markets are highly competitive.

• A) I and II are true
• B) I is true and II is false
• C) I is false and II is true
• D) I and II are false

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Definitions:

Yield to Maturity

The total return expected on a bond if it is held until its maturity date.

Bonds

Fixed-income investments where an investor loans money to an entity (corporate or governmental) that borrows the funds for a defined period at a variable or fixed interest rate.

Commission

A fee paid to an agent or employee for transacting a piece of business or performing a service, typically a percentage of the money received from the transaction.

Par Value

The face value of a bond or stock as stated by the issuer, which may differ from its market value.