Which One of the Following Identifies a New Bond Issue

question 7

Multiple Choice

Which one of the following identifies a new bond issue as being a private placement?

• A)The proceeds of the issue are used for a single project.
• B)The issue is marketed through a sole brokerage house.
• C)The issue is sold only to individuals rather than to institutional investors.
• D)The issue is not made available to the public.
• E)The issue names a private individual as the bond trustee.

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Definitions:

Curve Shift

A change in the position of a curve on a graph, indicating a shift in the relationship between two variables.

Movement Along

Refers to a change in the quantity demanded or supplied of a good due to a change in its price, leading to movement along the demand or supply curve.

Federal Budget Deficit

The shortfall when the total government expenditures exceed its revenues in a fiscal year, requiring borrowing to cover the gap.

Antitrust Laws

Legislation enacted to prevent or limit monopolies, promote competition, and safeguard consumer rights by regulating anti-competitive practices.