The Bonds That Are Sold to Local Investors Issued by a Firm

question 50

Multiple Choice

The bonds that are sold to local investors issued by a firm from another country are called:

• A) Private placement
• B) Foreign bonds
• C) Junk bonds
• D) Investment grade bonds

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Definitions:

Inefficiently Low Quality

A form of inefficiency in which sellers offer low-quality goods at a low price even though buyers would prefer a higher quality at a higher price; often a result of a price ceiling.

Allocation

The process of distributing resources or goods among different uses, users, or parties in a way that optimally meets criteria or objectives.

Mandated Price

A price set by government regulation or law, rather than determined by market forces of supply and demand.

Health Costs

Expenses related to maintaining the health of individuals, including medical care, medications, and hospital services.