Match Each Definition with the Correct Term Below

question 3

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.
-Zero coupon bonds

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Definitions:

APC

Average Propensity to Consume, a statistical measure reflecting the percentage of income that is spent on goods and services as opposed to being saved.

Disposable Income

The amount of money a household has available for spending and saving after income taxes have been accounted for.

Induced Consumption

Spending induced by changes in the level of income.

Autonomous Consumption

The minimum amount that people will spend on the necessities of life.