In the Double-Entry Bookkeeping System Used to Track the Economy,_____

question 43

Multiple Choice

In the double-entry bookkeeping system used to track the economy,_____.

• A)the value of aggregate output equals the aggregate income paid for the resources used to produce that output
• B)government spending on transfer payment is recorded
• C)the earnings of all shareholders in the economy from the sale of shares are recorded
• D)inventories are counted twice,once as investment and once as output
• E)intermediate goods are counted twice,once as a type of output themselves and once as part of the final output

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Definitions:

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.

Sinking Fund

A savings fund into which an organization sets aside money over time, intended to pay off a debt or bond at its maturity or to meet a future capital expense.

Subordinated

A ranking of debt that places this type of debt lower than other debts in terms of claims on assets or earnings, typically in the context of bankruptcy or liquidation.