When Capital Moves from Lower Returns to Higher Returns,there Will

question 31

Multiple Choice

When capital moves from lower returns to higher returns,there will be

• A)greater efficiency in the use of capital internationally.
• B)increased world output.
• C)increased world welfare.
• D)all of the above.

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Definitions:

Term to Maturity

The remaining time until a debt security, such as a bond, reaches its repayment date at which point the principal is repaid to investors.

Coupon

In finance, a coupon refers to the interest payment received by a bondholder from the bond's issuer at specified intervals.

Market Rate of Return

The average rate of return of investments in the market over a specific period.

Coupon Bonds

Bonds that pay the holder a fixed interest payment (coupon) periodically until the maturity date, at which point the principal is repaid.