Which of the Following Statements Is True

question 61

Multiple Choice

Which of the following statements is true?

• A)An example of a covenant is a restriction that limits those actions of the borrower that have an impact on the probability of repayment.
• B)An example of a covenant is a restriction that encourages those actions of the borrower that have an impact on the probability of repayment.
• C)A covenant is a restriction written into either bond or loan contracts.
• D)All of the listed options are correct.

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Definitions:

NASDAQ

A global electronic marketplace for buying and selling securities, as well as the benchmark index for U.S. technology stocks.

NYSE

The New York Stock Exchange, one of the largest stock exchanges in the world where stocks of publicly held companies are bought and sold.

Investor Relations

The management of communication and relationships between a company and its investors, aiming to provide an accurate account of company affairs.

National Financial Publications

Media outlets and publications that focus on reporting and analysis of financial markets, economic trends, and investment strategies.