From the 1970s to 2008, as a Fraction of GDP

question 28

Multiple Choice

From the 1970s to 2008, as a fraction of GDP, the quantity of money that people and businesses have held has been

• A) decreasing.
• B) increasing.
• C) fluctuating erratically.
• D) independent of people's use of credit cards.
• E) changing only as the interest rate changed.

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Definitions:

Straight Bond Value

The present value of a bond's future interest payments and its redemption value at maturity.

Conversion Price

The predetermined price at which convertible security can be exchanged for another asset, often shares of the issuing company's stock.

Coupon

The annual interest rate paid on a bond, expressed as a percentage of the face value, and paid from issue date until maturity.

Conversion Premium

The additional cost over the current market value of a convertible security that an investor pays to have the option to convert it into a set number of shares.