The Fundamental Characteristics Influencing the Value of a Financial Instrument

question 87

Multiple Choice

The fundamental characteristics influencing the value of a financial instrument include each of the following except:

• A) the size of the payment promised.
• B) when the promised payment will be made.
• C) where the instrument is traded.
• D) the likelihood of payment.

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Definitions:

State Unemployment Taxes

Taxes paid by employers to fund the state unemployment compensation programs for laid-off workers.

Merit Rating

A system used to evaluate and grade an employee’s performance, often influencing salary increments and promotions.

Unemployment Tax Rates

Rates set by governments to fund unemployment insurance programs, calculated as a percentage of employer payroll expenses.

Accrued Vacation Benefits

The earned but not yet taken or paid vacation time that is owed to employees, recognized as a liability on the balance sheet.