Which Term Refers to the Ability to Adapt to and Recover

question 14

Multiple Choice

Which term refers to the ability to adapt to and recover from hazards and crisis?

• A) Resistance
• B) Responsivity
• C) Reactivity
• D) Responsibility
• E) Resilience

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Definitions:

Effective Interest Method

A way of amortizing bond premiums or discounts over the bond's life that reflects the constant yield to maturity.

Premium Amortization

The process of gradually writing off the initial premium paid on a bond above its par value over the life of the bond.

Bonds

Bonds are financial instruments representing a loan made by an investor to a borrower, typically corporate or governmental, which pays interest over time and returns the principal at maturity.

Effective Yield

The total yield on an investment, taking into account the compounding of interest, as opposed to just the nominal rate.