What Is the Term for a Formal Borrowing Arrangement That

question 90

Multiple Choice

What is the term for a formal borrowing arrangement that includes collateral, in which a borrower agrees to make periodic interest payments to the lender as well as repay the principal at a specific time in the future?

• A)A bond
• B)A debenture
• C)A mortgage
• D)A note payable

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Definitions:

Production Possibility Frontier

A curve depicting the maximum attainable combinations of two products that may be produced with available resources and technology.

Increasing Opportunity Costs

The principle that as you increase production of one good, the opportunity cost of producing an additional unit of this good increases.

Constant Opportunity Costs

A condition in which the opportunity cost of producing one more unit of a good remains constant irrespective of the quantity.

Decreasing Opportunity Costs

A situation where the cost of forgoing the next best alternative decreases as more units of a product or service are produced.