Considering the Value of a Financial Instrument, the Bigger the Size

question 55

Multiple Choice

Considering the value of a financial instrument, the bigger the size of the promised payment the:

• A) less valuable the financial instrument because risk must be greater.
• B) longer an investor has to wait for the payment.
• C) more valuable the financial instrument.
• D) greater the risk.

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Definitions:

Trademark Protected

Refers to brands, logos, slogans, and other distinctive signs that have legal protection to prevent unauthorized use by others.

Nonfunctional

Describing an item or system that does not operate or function as intended or expected.

Shape of a Product

The physical contours, dimensions, and appearance of an item as it relates to its design, functionality, and aesthetic appeal.

Gift Causa Mortis

A gift made by an individual in contemplation of imminent death, which can be revoked if the person survives.