Second Generation Air Bag Systems Are Being Discussed

question 29

Multiple Choice

Second generation air bag systems are being discussed. Technician A says a second generation air bag inflates with about 20 to 35 percent more energy. Technician B says second generation air bags reduce the number of injuries caused by the air bag itself. Who is correct?

• A) A only
• B) B only
• C) both A and B
• D) neither A nor B

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Definitions:

Sinking Fund

A fund established by a borrower, setting aside revenue over time to repay a debt or replace a depreciating asset in the future.

Call Provisions

Terms in a bond contract that allow the issuer to repurchase and retire the bond at a specified price before maturity, protecting against interest rate risk.

Bond Indenture

A legal contract between a bond issuer and a bondholder, detailing the terms of the bond such as the coupon rate, maturity date, and obligations of the issuer.

Call Provision

A clause in a bond or other fixed-income security that allows the issuer to repay the principal before the maturity date.