A Type of Bond That Is Unsecured and Gives Bondholders

question 71

Multiple Choice

A type of bond that is unsecured and gives bondholders a claim secondary to that of other designated bondholders, with respect to both income and assets is called a(n) :

• A)debenture bond.
• B)mortgage bond.
• C)preemptive bond.
• D)subordinated debenture.
• E)treasury bond.

Comprehend how political systems and ideologies (e.g., collectivism, socialism) influence business operations and international trade.

Understand the importance of assessing political freedom and its impact on business operations in different countries.

Recognize the consequences of macro and micro political risks on international businesses.

Understand the concept of net present value and its calculation for capital investment decisions.

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Definitions:

Inflation

The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling. Central banks attempt to limit inflation, and avoid deflation, in order to keep the economy running smoothly.

Unemployment

The situation when individuals who are capable of working and willing to work cannot find employment.

Balance of Payments

A comprehensive record of all economic transactions between residents of a country and the rest of the world during a specific period.

Balance-of-Economic Transactions

A record of all economic transactions between residents of a country and the rest of the world during a particular period, including trade, investments, and financial transfers.