One of the Four General Classifications Used by Bond Information

question 32

Multiple Choice

One of the four general classifications used by bond information includes the class called "utilities," which can be further broken down into ________.

• A) electric power companies, gas distribution companies, water companies, and communication companies.
• B) airlines, railroads, and trucking companies.
• C) manufacturing, merchandising, and service companies.
• D) depository institutions, non-life insurance companies, and mutual funds.

Identify the macroeconomic variables that change during economic fluctuations and recessions.

Distinguish between short-run and long-run effects in the aggregate demand and aggregate supply model.

Interpret economic diagrams and models to analyze changes in the economy.

Understand the concepts of recession, depression, and the economic variables associated with them.

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Definitions:

Debt-Equity Ratio

A calculation to determine a business's leverage by dividing its liabilities by the equity of its stockholders.

External Equity Financing

This term refers to the process through which a company raises capital by selling its shares to external investors, outside the existing shareholders or company insiders.

Internal Growth Rate

The maximum growth rate a firm can achieve without external financing, based on reinvestment of its own earnings.

Financial Planning

The process of estimating the capital required and determining its competition. It is the process of framing financial policies in relation to procurement, investment and administration of funds of an enterprise.