Which of the Following Is True

question 72

Multiple Choice

Which of the following is true?

• A)Credits increase both revenues and expenses.
• B)Credits increase expenses and decrease revenues.
• C)Credits increase revenues and decrease expenses.
• D)Credits decrease both revenues and expenses.

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Definitions:

Risky

Characterized by or involving uncertainty, potential danger, or financial loss.

Interest Rates

The cost of borrowing money or the return on investment, expressed as a percentage, that lenders charge borrowers over a specified period.

Values of Bonds

The worth or price of a bond, influenced by interest rates, the bond's credit quality, and the duration until maturity.

Perpetuities

A financial instrument that provides an infinite stream of identical payments.