Which of the Following Is a Drawback of Privatization of Government

question 9

Multiple Choice

Which of the following is a drawback of privatization of government functions?

• A)Privatization reduces the ability to scrutinize government functions.
• B)The bidding process involves too many rules.
• C)Privatized services often cost less to deliver.
• D)Privatized service delivery is often too slow.

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Definitions:

Par-value

The nominal or face value of a bond, share of stock, or other financial instrument, representing the value at which it will be redeemed at maturity.

Zero-coupon Bonds

Bonds that do not pay periodic interest and are sold at a discount from their face value; the return comes from the difference between the purchase price and the face value paid at maturity.

Yield To Maturity

The total return expected on a bond if it is held until the date it matures, including all interest payments and the repayment of the principal.