Aidan and Nadia Are Parties to a Contract That Allows

question 40

Multiple Choice

Aidan and Nadia are parties to a contract that allows Nadia to enforce an "acceleration clause" (as that term was used in the text) .Which of the following statements is most likely TRUE?

• A)Nadia borrowed money from Aidan.
• B)The parties' contract is subject to a condition precedent that requires Aidan to do something (such as arrange financing for the purchase)within a certain period of time.
• C)Nadia is concerned that Aidan may fall into a habit of failing to make loan payments on schedule so if a payment is made late Nadia has a right to accelerate the entire debt as being due.
• D)Aidan is indebted to Nadia,but he cannot possibly be a mortgagor.
• E)Nadia is entitled to repay a debt to Aidan more quickly than their contract contemplates.

---

Definitions:

Consumers' Incomes

The total amount of income earned by consumers, influencing their ability to purchase goods and services.

Normal Good

A type of good for which demand increases as the income of the consumer increases, indicating a direct relationship between income and demand.

Yield to Call

The return an investor would receive if a callable bond is held until the issuer exercises their option to redeem it before its maturity date.

Current Yield

The annual interest payment of a bond divided by its current market price, used to compare the return on investment of different bonds.