Why Is Radio the Least Expensive Electronic Medium on Which

question 85

Multiple Choice

Why is radio the least expensive electronic medium on which to produce an ad?

• A) Local pricing keeps costs low.
• B) The Federal Communications Commission controls the cost of radio commercials.
• C) Radio appeals only to one sense-sound.
• D) Music does not affect the cost of radio commercials.
• E) Talent does not influence the effectiveness of radio commercials.

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Definitions:

Sinking Fund

A fund established by a borrower, setting aside revenue over time to repay a debt or replace a depreciating asset in the future.

Call Provisions

Terms in a bond contract that allow the issuer to repurchase and retire the bond at a specified price before maturity, protecting against interest rate risk.

Bond Indenture

A legal contract between a bond issuer and a bondholder, detailing the terms of the bond such as the coupon rate, maturity date, and obligations of the issuer.

Call Provision

A clause in a bond or other fixed-income security that allows the issuer to repay the principal before the maturity date.