Drafts That Have a Maturity Date of Six Months Are

question 65

True/False

Drafts that have a maturity date of six months are exempt from registration with the SEC.

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Definitions:

Compounded Interest

Interest calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan.

Annual Interest Rate

The percentage increase in money charged per year for the use of borrowed funds or for delaying the repayment of a debt.

Interest Rate

The cost of borrowing money or the reward for saving, usually expressed as a percentage of the principal amount per period.

Economic Profit

The return flowing to those who provide the economy with the economic resource of entrepreneurial ability; the total revenue of a firm less its economic costs (which include both explicit costs and implicit costs); also called “pure profit” and “above-normal profit.”