An Economic Model Usually Includes

question 21

Multiple Choice

An economic model usually includes:

• A)neither independent nor dependent variables
• B)only a dependent variable and no independent variables
• C)the proposition that no relationship exists between various factors
• D)only an independent variable and no dependent variables
• E)two or more factors that have measurable values

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Definitions:

Annual Coupon

The annual interest payment received by bondholders, expressed as a percentage of the bond's face value.

Par Value

The face value of a bond or stock, as designated by the issuing company, which may not reflect the market value.

Premium

An amount paid for an insurance policy, or the cost above the nominal or face value of a financial instrument.

Par Value

The nominal or face value of a bond, stock, or coupon as stated by the issuer, which is the value written on the face of the security.