A Company That Manufactures Door Hinges Used by GM in Its

question 80

Multiple Choice

A company that manufactures door hinges used by GM in its car doors gets increased orders from GM because more consumers are demanding GM vehicles. This illustrates ________ for this __________.

• A)secondary demand; shopping good
• B)derived demand; prestige good
• C)derived demand; production good
• D)primary demand; unsought good

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Definitions:

Coupon Rate

The annual interest rate paid by a bond, expressed as a percentage of the bond's face value.

Current Yield

A financial ratio that shows the annual return (interest or dividends) of an investment as a percentage of its current price.

Semi-Annual

Occurring twice a year; often refers to the payment frequency of bond interest or dividends.

Coupon Bond

A debt security that pays the holder interest payments at predefined intervals until maturity, at which point the principal is repaid.