Reggie's Income Exceeds His Expenditures

question 47

Multiple Choice

Reggie's income exceeds his expenditures.Which statement best describes Reggie?

• A) He is a saver who demands money from the financial system.
• B) He is a saver who supplies money to the financial system.
• C) He is a borrower who demands money from the financial system.
• D) He is a borrower who supplies money to the financial system.

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Definitions:

Par

The face value of a security or bond, which is the amount paid back to the investor when the security or bond matures.

Gain Or Loss

The financial result from the difference between the selling price and the purchase cost of an asset.

Accrued Interest

Interest that has been incurred but not yet paid, reflecting amounts owed for loans or investments.

Gain On Sale

The profit realized from the sale of assets when the selling price exceeds the book value of the asset sold.