Under the Articles of Confederation, the Relationship Between the States

question 29

Multiple Choice

Under the Articles of Confederation, the relationship between the states and the federal government can best be compared to

• A) the United Nations' relationship with member states.
• B) a state government's relationship with counties.
• C) a state government's relationship with cities.
• D) the United States' relationship with the Soviet Union during the Cold War.

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Definitions:

Par

The face value or nominal value of a bond, stock, or other financial instrument, typically the amount on which interest payments or dividends are calculated.

Zero-Coupon Bond

A debt security that does not pay periodic interest, instead being sold at a discount and maturing at face value, generating profit at redemption.

Interest Payments

The cash outflows that a borrower makes to a lender as a compensation for the use of borrowed funds.

Premium Bond

A bond that is trading above its par value in the financial markets.