Match Each Definition with the Correct Term Below

question 20

Short Answer

Match each definition with the correct term below.
a.
A security that represents money that a corporation borrows from the investing public.
b.
A long-term debt secured by real property.
c.
Bonds that are issued in the name of the bondholder.
d.
The method of bond amortization that uses a constant interest rate each period to amortize the bond premium or discount.
e.
Bonds that do not require periodic interest payments but instead promise to pay a fixed amount at the maturity date.
f.
The excess of the face value over the issue price of a bond.
g.
A contract that requires a company to pay benefits to its employees after they retire.
h.
The excess of the issue price over the face value of a bond.
i.
A liability or an asset that results from using different methods to calculate income taxes on the income statement and income tax liability on the income tax return.
j.
The method of bond amortization that equalizes amortization of a bond discount or premium for each interest period over the life of the bond.
-Deferred income taxes

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Definitions:

Discretionary Fiscal Policy

It involves government policy changes in taxation and spending designed to influence economic activity, typically to counteract inflation or deflation and stabilize the economy.

Nominal Output

The total value of goods and services produced by an economy, measured in current prices without adjusting for inflation.

Interest Rate

The cost of borrowing money, typically expressed as a percentage of the amount borrowed.

Discretionary Fiscal Policy

Government strategy that includes altering its expenditure and taxation levels to oversee and impact a country's economic conditions.