Which of the Following Was Not an Argument Made by Recipients

question 79

Multiple Choice

Which of the following was not an argument made by recipients of AIG bonuses who were defending their right to receive and retain the bonus money?

• A) The bonuses were negotiated into their contracts prior to the AIG collapse.
• B) The bonuses were based on meeting individual goals that the employees did meet.
• C) The bonuses were needed to retain AIG's top talent, who were necessary as the company rebuilt.
• D) The bonuses came from money AIG had on hand at the time of the collapse and did not come from the taxpayer-supplied funds.

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Definitions:

Compounded Annually

The process where interest earned is added to the principal sum once a year, and future interest is earned on the new total.

Compounded Nominal Annual Rate

The rate of interest for one year, without taking inflation into account, which is compounded at specified intervals within that year.

Effective Rate

The actual interest rate on an investment or loan, taking into account the compounding of interest over time.

Effective Rate

The actual rate of interest earned or paid on an investment or loan over a specified timeframe, taking into account the effect of compounding.