The Four Parts of the Business Cycle Occur in the Following

question 28

Multiple Choice

The four parts of the business cycle occur in the following order

• A) recession, trough, peak, expansion.
• B) expansion, trough, peak, recession.
• C) recession, trough, expansion, peak.
• D) expansion, trough, recession, peak.

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Definitions:

Semiannual Interest Payments

These are interest payments made twice a year on a financial instrument, such as a bond.

Coupon Rate

The annual interest rate paid by a bond's issuer to its bondholders, usually expressed as a percentage of the face value.

Face Value

The nominal or dollar value printed on a stock, bond, or other financial instrument, representing its legal value.

Maturity

The date on which the principal amount of a financial instrument, such as a bond or loan, is to be paid back in full.