Refer to the Above Diagram

question 101

Multiple Choice

Refer to the above diagram.If society is currently producing the combination of bicycles and computers shown by point D, the production of 2 more units of bicycles:

• A)cannot be realized because resources are fully employed.
• B)will cost 1 unit of computers.
• C)will cost 2 units of computers.
• D)will cause some resources to become unemployed.

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Definitions:

Investment Portfolio

A collection of investments held by an institution or an individual.

Term To Maturity

The time remaining until a debt instrument, such as a bond or loan, is due to be repaid.

Strip Bond

A debt security that has had its periodic interest payments removed, trading only on the principal amount and offering a final payment at maturity.

Par Value

Par value is the nominal or face value of a bond, share, or coupon as stated by the issuer.