Critical Thinking Questions Case 5-1

question 69

Multiple Choice

Critical Thinking Questions Case 5-1
You are the administrative assistant to the owner of a small business. The owner has heard that, when distributing artwork in a variety of formats for customers, print shops, webmasters, and email attachments, portability is an important factor to consider when choosing formats. She does not know what portability refers to and asks for your help.
The owner asks you to explain what a PDF is. You tell her ____.

• A) a PDF is a flexible file format based on the PostScript imaging model that is cross-platform and cross-application
• B) PDF stands for Paper Document Format
• C) PDF files are not similar to XPS files
• D) PDF files are not effective because they do not accurately display and preserve fonts, page layouts, and graphics

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Definitions:

Premium, Discount, or Par

A classification to describe if a bond is trading above (premium), below (discount), or at its face value (par).

Market Rate

The ongoing market rate at which you can buy or sell an asset or service.

Contract Rate

The interest rate stated in a loan or lease agreement, dictating the rate at which interest accrues on the outstanding principal.

Bond Premium

The excess of a bond's market price over its principal amount or nominal value.