When a Binding Price Ceiling Is Imposed on a Market

question 52

Multiple Choice

When a binding price ceiling is imposed on a market to benefit buyers,

• A)no buyers actually benefit.
• B)some buyers benefit,but no buyers are harmed.
• C)some buyers benefit,and some buyers are harmed.
• D)all buyers benefit.

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Definitions:

Strip Bond

A bond where both the principal and regular interest payments have been removed, typically sold at a discount and pays no interest until maturity.

Yield Rate

The income return on an investment, such as the interest or dividends received, expressed annually as a percentage based on the investment's cost, current market value, or face value.

Strip Bond

A debt security that has had its principal and coupon payments detached and sold separately.

Compounded Semi-annually

Interest calculated on the initial principal and the interest that has been added on a bi-annual basis.