Who Determines When the Loan Associated with a Bond Becomes

question 136

Multiple Choice

Who determines when the loan associated with a bond becomes due?

• A) the bondholder,by declaring a desire to collect on the loan
• B) anyone who sells or resells the bond,by assigning a maturity date at the time of sale
• C) anyone who buys the bond,by assigning a maturity date at the time of purchase
• D) the bond issuer,by assigning a maturity date when the bond is issued
• E) the bond issuer,by declaring a desire to repay the loan

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Definitions:

Interest Rate

The remuneration, depicted as a fraction of the principal, that a lender exacts from a borrower for asset utilization.

Income Effect

A change in the consumption patterns of individuals or economies due to a change in real income or purchasing power.

Labor-Supply Curve

A graphical representation showing the relationship between the quantity of labor supplied by workers and the wage rate.

Income Effect

How an alteration in income levels for a person or economy affects the demand for a particular good or service.