Which of the Following Statements Is Correct

question 16

Multiple Choice

Which of the following statements is correct?

• A)Private goods yield direct benefits to the purchaser and are financed by government.
• B)Public goods yield widespread external benefits and are purchased by government with tax revenues.
• C)Public goods are bought voluntarily out of private incomes and yield no significant external benefits.
• D)Public goods are bought voluntarily out of private incomes and yield widespread external benefits.

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Definitions:

Face Value

The nominal or dollar value printed on a bond, bill, or other financial instrument, representing the amount to be repaid at maturity.

Selling Premium

The amount by which the selling price of a bond exceeds its par value or face value.

Premium on Bonds Payable

The excess amount by which bonds are issued over their face value, representing an additional cost of borrowing to the issuer.

Amortization

The method of incrementally expensing the original value of an intangible asset throughout its operational life.