Inventory Reductions Are a Signal Indicating That

question 183

Multiple Choice

Inventory reductions are a signal indicating that

• A)the economy is close to disaster.
• B)the Dow Jones Industrial Average will fall.
• C)manufacturers need to increase production.
• D)producers need to lower prices.

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Definitions:

Callable Bonds

Bonds that give the issuer the right to redeem them before their maturity date at a pre-specified price.

Bond Indenture

The underlying contract between the company issuing bonds and the bondholders.

Bond Premium

The additional amount over the face value for which a bond is sold, representing the difference between the bond's issue price and its nominal value.

Straight-line Amortization

A method of evenly spreading the cost of an intangible asset over its useful life for accounting and tax purposes.