The Social Contract Theory Concerns Itself with How to Construct

question 53

Multiple Choice

The social contract theory concerns itself with how to construct a just society given __________.

• A) the many inequalities of wealth, knowledge, and social status
• B) the difficulty of acting toward others as people would have them act toward themselves
• C) the many logical fallacies contained in legal contracts
• D) the implicit agreement that the powerful are best suited to govern
• E) the inherent nature of those in a society to argue and reject consensus

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Definitions:

Pure Discount Securities

Financial instruments that are sold at a discount from their face value and pay no interest until maturity, such as zero-coupon bonds.

Clean Price

The price of a bond excluding any interest that has accrued since issue or during the last coupon payment.

Dirty Price

The price of a bond that includes accrued interest, in contrast to the clean price which excludes it.

Accrued Interest

Interest that has accumulated over a period but has not yet been paid or received.