A Market-Determined Price

question 45

Multiple Choice

A market-determined price

• A)is determined by the manager of a firm.
• B)is determined by the intersection of demand and supply curves.
• C)is an endogenous variable
• D)both a and b
• E)both b and c

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Definitions:

Interest-bearing Notes

A debt instrument that pays interest to the lender, including a specified interest rate and maturity date.

Long-term

Describes assets, liabilities, or financial investments that are expected to be held or have a life span greater than one year.

Contract Rate

The agreed-upon rate specified in a contract that determines the amount of interest to be accrued on financial instruments such as loans or bonds.

Face Value

The nominal or dollar value printed on a security or financial instrument, such as a bond or stock.