When Voters Tend to Judge Incumbents Based Upon Their Performance

question 46

Multiple Choice

When voters tend to judge incumbents based upon their performance they are engaging in ________.

• A) retrospective voting
• B) prospective voting
• C) transcriptive voting
• D) postscriptive voting
• E) perspective voting

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Definitions:

Bond Duration

The weighted average time until the cash flows of a bond are received, serving as an indicator of the bond's sensitivity to interest rate changes.

Coupon Rate

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

Maturity

The date on which the principal amount of a financial instrument, such as a bond or loan, becomes due and payable.

Bond Portfolios

Collections of bonds held by investors or institutions, designed to achieve certain financial goals while managing risk and return.