A Promise to Pay Back a Certain Amount of Money

question 165

Multiple Choice

A promise to pay back a certain amount of money at a certain time is:

• A) a bond.
• B) future value.
• C) face value.
• D) a maturity date.

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Definitions:

Flows of Funds

The movements of money between sectors of an economy, showing how funds are used and where they come from.

Net Income

The profit of a company after all expenses and taxes have been deducted from total revenue.

Balance of Payments

A financial statement that summarizes a country’s transactions with the rest of the world, including imports, exports, and capital flows.

Credit Item

An entry that increases the balance in a bank account or financial statement, signifying an inflow of funds.