When Something of Value Has No Price Attached to It

question 376

Multiple Choice

When something of value has no price attached to it,

• A)externalities will be present.
• B)production of the product has no cost.
• C)government should not intervene to produce the product.
• D)private companies will eventually produce the product, and the good will no longer be free.

---

Definitions:

Par Value

The face value of a bond or stock as stated by the issuing company, typically not indicative of market value.

Call Price

The price at which a callable bond or security can be redeemed by the issuer before its maturity.

Negative Covenants

Provisions in a loan agreement that restrict certain actions of the borrower to protect the lender's interests.

Bond Indenture

A legal contract detailing the terms and conditions under which a bond is issued, including interest rates, maturity dates, and issuer obligations.