When the Proceeds of a Note Are Less Than the Face

question 41

Multiple Choice

When the proceeds of a note are less than the face value of the note,which of the following is true.

• A)The market rate was less than the face rate of interest.
• B)The note was issued at a premium.
• C)The market rate of interest was greater than the face rate of interest.
• D)The market rate of interest was the same as the face rate of interest.

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Definitions:

45 Degree Line

A reference line in economic graphs that represents where the value of the independent variable is equal to the value of the dependent variable.

Income

The money received, usually from a job, business, or assets, over a certain period of time.

Income Distribution

The way in which total income is shared among the population or different segments of the economy.

Unequal

Lacking equality in size, quantity, or degree; not evenly distributed or balanced.