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Use the following to answer question 96:
Figure: Supply and Demand 3
-(Figure: Supply and Demand 3) Refer to the figure. If the government sets a price ceiling at $8 in this figure, it will create a deadweight loss of:
Loan Guarantees
Agreements in which a third party (the guarantor) agrees to repay the debt or perform an obligation if the debtor defaults.
Implicit Call Option
An option embedded in an investment that gives the holder the right but not the obligation to undertake certain actions under specific conditions.
Convertible Bond
A type of bond that can be converted into a predetermined number of shares of the issuing company's equity at certain times during its life, usually at the discretion of the bondholder.
New Shares
New shares refer to additional stock issued by a company, either through public offerings or other means, to raise capital.
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