Which of the Following Is NOT an Advantage for a State's

question 97

Multiple Choice

Which of the following is NOT an advantage for a state's central borrowing authority?

• A) By grouping issues as a single one, lower economies of scale can be obtained.
• B) Potential conflict between different debt issuers may be overcome.
• C) The timing of debt issues can be controlled so they are brought to the market at the most opportune time.
• D) The central borrowing authority can do a public issue more effectively than a private placement.

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Definitions:

Variable Costs

Costs that change in proportion to the level of goods or services produced by a business.

Expenses

Outflows or using up of assets as part of operations of a business to generate revenue.

Contribution Margin

The difference between sales revenue and variable costs of a product or service, indicating how much revenue contributes toward covering fixed costs and generating profit.

Sales

The total revenue generated from selling goods or services over a specific period of time.