The Process in Which the Principal Amount of a Security

question 43

Multiple Choice

The process in which the principal amount of a security is repaid gradually over time is referred to as

• A)securitization.
• B)depreciation.
• C)amortization.
• D)discounting.

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Definitions:

Unit Cost

The amount a company spends to create, store, and market one instance of a certain product or service.

Least-Cost Combination

The least-cost combination is an economic principle that refers to the mix of factors of production that minimizes costs for a given level of output.

Resources

Inputs used in the production of goods and services, such as labor, capital, land, and entrepreneurship.

Output

The total amount of goods or services produced by a company, industry, or economy over a specific period of time.