Secured Bonds

question 97

Multiple Choice

Secured bonds:

• A) Are called debentures.
• B) Have specific assets of the issuing company pledged as collateral.
• C) Are backed by the issuer's bank.
• D) Are subordinated to those of other unsecured liabilities.
• E) Are the same as sinking fund bonds.

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Definitions:

Government Intervention

Actions taken by the government to influence economic activity and market outcomes, such as regulation, subsidies, and taxation.

Monetarists

Economists who believe that the variations in the money supply have major influences on national output in the short run and the price level over longer periods.

Money Supply

The total monetary resources accessible in an economy, including but not limited to cash, coins, and the balances held in checking and savings accounts, at a particular moment.

Reason and Good Sense

The ability to think about things logically and make judgments that are based on reason rather than emotion.