The Bid Price for a Bond Is

question 71

Multiple Choice

The bid price for a bond is

• A)the minimum price that you are allowed to bid for a bond that is being auctioned by the government.
• B)the maximum price that you are allowed to bid for a bond that is being auctioned by the government.
• C)the price that you will receive from a securities dealer if you sell the bond.
• D)the price that you must pay a securities dealer to purchase a bond.

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Definitions:

Habituation

The process by which an organism becomes accustomed to a stimulus and therefore responds less over time.

Assimilation

The process by which individuals or groups of differing ethnic heritage are absorbed into the dominant culture of a society.

Accommodation

The process by which the eye's lens changes shape to focus near or far objects on the retina, or adaptively adjusting one’s beliefs or thoughts in cognitive psychology.

Working Memory

A cognitive system that holds and manipulates information in short-term consciousness, critical for reasoning, guidance of decision-making, and behavior.