The Terms or Covenants of a Bond Contract Are Set

question 110

Multiple Choice

The terms or covenants of a bond contract are set out in which of the following documents?

• A) debenture
• B) trust indenture
• C) mortgage
• D) negative pledge clause

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Definitions:

100-percent-reserve Banking

A banking system in which banks are required to keep 100% of their deposits available as reserves, thus eliminating the possibility of bank runs.

Money Supply

The collective sum of money assets in an economy at a certain timeframe.

Standard of Living

The degree of prosperity, convenience, material possessions, and essential needs accessible to a specific social or economic group or particular location.

Open Market

A marketplace where buyers and sellers engage in trade of goods, services, and financial instruments freely and openly.