The Deliberate Use of Basic Ideas in Some Practical Application,such

question 25

Multiple Choice

The deliberate use of basic ideas in some practical application,such as making use of the knowledge of how electricity works to develop the telephone,is called a(n) :

• A)diffusion principle.
• B)primary innovation.
• C)modernization.
• D)integrative mechanism.
• E)secondary innovation.

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Definitions:

Amortization

The gradual reduction of a debt over a specific period of time through regular payments, or the allocation of the cost of an intangible asset over its useful life.

Coupon Rate

The annual interest rate paid by a bond issuer to its bondholders, typically expressed as a percentage of the bond's face value.

Market Rate

The prevailing interest rate available in the marketplace for securities, loans, or deposits, often determined by supply and demand forces.

Face Value

The nominal value of a security stated by the issuer, usually representing the amount to be repaid at maturity for bonds.