What Is a "Covenant

question 70

Multiple Choice

What is a "covenant"?

• A)Guarantee of the price to the borrower.
• B)Contract that outlines the terms of the borrowing agreement.
• C)Promise from the borrower to restrict certain activities.
• D)Feature that permits the issuer to redeem before maturity.

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Definitions:

Magnetic Field

A vector field surrounding magnets, electric currents, and changing electric fields, where magnetic forces are exerted.

Armature

The rotating part of an electric machine (motor or generator) within which a current is induced by a magnetic field.

Brushless DC

A type of direct current electric motor (DC motor) that uses an electronic controller to switch the current in the motor, eliminating the need for brushes.

Wound Armature

A component in electrical machines consisting of coils wound around an iron core, which rotates in a magnetic field to induce electromotive force.