Which One of the Following Best Defines a Plain Vanilla

question 34

Multiple Choice

Which one of the following best defines a plain vanilla bond?

• A) bond secured by agricultural or food inventory
• B) bond with relatively standard features
• C) unsecured debt
• D) bond secured with financial collateral
• E) bond that has no coupon payments

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Definitions:

Inferior Good

A type of good for which demand decreases as the income of consumers increases, inversely related to income elasticity.

Demand

The amount of a product or service that consumers are prepared and capable of buying at different price levels over a specific time frame.

Related Goods

Related goods are goods that can either be substitutes or complements to each other, affecting each other's demand and consumption patterns.