Ralph Is a Plumber

question 120

Multiple Choice

Ralph is a plumber.Which of the following are included in his human capital?

• A)the knowledge he learned on the job,and the tools he uses
• B)the knowledge he learned on the job,but not the tools he uses
• C)the tools he uses,but not the knowledge he learned on the job
• D)neither the knowledge he learned on the job nor the tools he uses

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Definitions:

Bond Principal

Bond principal, or face value, is the amount that the issuer agrees to pay the bondholder at maturity, excluding any interest payments.

Coupon Rate

The interest rate on a bond, determined as a percentage of the bond's face value, that the issuer promises to pay the bondholder annually.

Market Rate

The current price or interest rate at which an asset or service can be bought or sold in a particular market.

Secured Bond

Specific assets are pledged as a guarantee of repayment at maturity.