Are Restrictions Written into Bond and Loan Contracts Either Limiting

question 39

Multiple Choice

...are restrictions written into bond and loan contracts either limiting or encouraging the borrower's actions that affect the probability of repayment.

• A)Covenants
• B)Implicit contracts
• C)Credit rationings
• D)Options

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Definitions:

Displace

To move or shift something from its usual or proper place, often resulting in a change of position or role.

State Legislation

Laws and regulations enacted by the legislative bodies of individual states within a federal system.

Federal Legislation

Laws passed by the national legislature of the United States, the Congress, which apply throughout the country.

Necessary

An essential requirement or condition that must be met or possessed for a particular purpose or outcome.