(Consider This) Which of the Following Has Been an Effect

question 12

Multiple Choice

(Consider This) Which of the following has been an effect of the U.S. government's ethanol program?

• A) Prices for crops such as soybeans and sorghum have fallen dramatically.
• B) Prices for beef, pork, and chicken have risen.
• C) Water use has declined, as corn is a less water-intensive crop.
• D) All of these effects have resulted from the ethanol program.

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Definitions:

Compounded Semiannually

This refers to the process of calculating interest on both the initial principal and the accrued interest from previous periods, done twice a year.

Maturity Date

The specified date on a financial instrument at which the principal (and usually the final interest payment) is due to be paid.

Face Value

The nominal value printed on a financial instrument like a bond or stock certificate, differing from its market value.

Strip Bond

A bond where both the principal and regular coupon payments have been separated and are sold individually as zero-coupon bonds.