Of the Following, Which Statement Is Most True About the Relationship

question 8

Multiple Choice

Of the following, which statement is most true about the relationship between politics and money in the U.S. today?

• A)Money is a major advantage in seeking office, and politics can be lucrative for those who are elected.
• B)Money does not really matter in getting elected, and most politicians leave office poorer than when they entered it.
• C)Money can help one get elected, but it is of little importance once in office.
• D)Money is absolutely necessary to get elected, but once in office, politicians tend to lose money.
• E)Money is irrelevant for elections, but political office can enable one to become moderately wealthy.

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Definitions:

Conversion Ratio

The number of shares per bond received for conversion into stock.

Conversion Price

The predetermined price at which convertible security can be converted into a common stock.

Annual Coupon

The annual coupon refers to the yearly interest payment made by bond issuers to bondholders, usually expressed as a fixed percentage of the bond's face value.

Straight Debt

A fixed-income security such as a bond, which pays a fixed interest rate and has a fixed maturity date, without any additional options or features.