Alumni Donations to Universities and Colleges May at First Appear

question 24

Multiple Choice

Alumni donations to universities and colleges may at first appear _____, but further examination reveals that they are motivated by _____.

• A) self-interested; altruism
• B) self-interested; greed
• C) altruistic; self-interest
• D) altruistic; the sunk cost fallacy

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Definitions:

Bond Issuer

A bond issuer is an entity, such as a corporation, government, or municipality, that raises funds by issuing bonds to investors, in return for borrowing money over a specified period at an agreed interest rate.

Promissory Notes

Written, legally binding promises to pay a specified sum of money at a defined future date.

Installment Notes

A form of debt or loan that is paid back in regular, periodic installments, often including both principal and interest.

Principal

The original sum of money borrowed in a loan or invested, excluding any interest or dividends.