Identify the Correct Statement

question 24

Multiple Choice

Identify the correct statement.

• A)It is absolutely compulsory for the government to earn a profitable return on the money it earns by selling bonds.
• B)When government borrowing rises, interest rates decline, thereby driving up private investment.
• C)When interest rates rise, fewer number of corporations offer new bonds to raise investment funds.
• D)An increase in interest rate reduces the cost of borrowing by the firms.
• E)When interest rates fall, the firm's cost of raising funds through bonds increases.

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Definitions:

Automated Router

A device or software that automatically directs data traffic or operations to optimize efficiency in networks or manufacturing processes.

Capacity

The maximum output that an organization can produce in a given period under normal conditions.

Job-Order Costing

A cost accounting system that accumulates costs per individual job or project to determine its profitability or cost-effectiveness.

Predetermined Overhead Rate

An estimated rate used to allocate overhead costs to products or services, based on a chosen activity base.