Which of the Following Statements Best Describes How Policies in the Private

question 14

Multiple Choice

Which of the following statements best describes how policies in the private sector are different from policies in the public sector?

• A) Private sector policies are slow, deliberate, and reactive to events.
• B) Private sector policies are determined by the opinions and feelings of those employed in that sector.
• C) Private sector policies are based on economics and market trends.
• D) Private sector policies are based on rational decision making.

---

Definitions:

Debt Investments-HTM

Investments in debt securities intended to be held to maturity, accounting for fixed-income investments until they are redeemed.

Bonds Mature

The point in time when a bond's principal amount is due to be paid back to the bondholder.

Interest Payments

Payments made to a lender by a borrower in return for the use of borrowed money, typically represented as an annual percentage of the loan principal.

Unrealized Gain

An increase in the value of an asset that has not been sold yet; hence, the gain is not reflected in the income statement.