Firms That Are Involved in More Than One Type of Business

question 187

Multiple Choice

Firms that are involved in more than one type of business could be evidence of an attempt to

• A)increase private profit at the expense of consumers.
• B)internalize some forms of positive externalities.
• C)reduce the impact of government regulations on their business.
• D)increase the private marginal cost of production.

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Definitions:

Interest-Rate Sensitivity

A measure of how much the value of an investment or a portfolio will change in response to a change in interest rates.

Bond Prices

The cost at which a bond is trading, which can fluctuate based on interest rates, the bond's credit quality, and other factors.

Coupon Rate

The per annum interest rate of a bond, depicted as a percentage of its principal amount.

Zero-Coupon Bond

A financial instrument that pays no regular interest, sold at a significant discount and redeemed for its full face value at maturity.