The Term Confederation or Confederal Refers to

question 22

Multiple Choice

The term confederation or confederal refers to

• A) a system in which most power is with the central government.
• B) a voluntary association in which states have most of the power.
• C) a system in which state and local governments have equal power with the central government.
• D) a national legislature.
• E) the southern states where slavery was legal.

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Definitions:

Strike Price

The set price at which an option contract can be bought or sold when it is exercised.

Pre-Tax Net Profit

The amount of profit earned by a company before taxes are deducted.

Time Value

Refers to the concept that money available at the present time is worth more than the identical sum in the future due to its potential earning capacity.

Option

A financial derivative that gives the buyer the right, but not the obligation, to buy or sell an asset at a specified price within a certain period.