Which of the Following Best Describes the Difference Between a "Financial

Which of the following best describes the difference between a "financial" bond covenant and a "nonfinancial" bond covenant?

A) A financial covenant ensures that management does not spend beyond yearly budgeted amounts; a nonfinancial covenant ensures that management does not take on too much debt.
B) A financial covenant ensures that management does not take on too much debt; nonfinancial covenants ensure that assets are insured, among other possible requirements.
C) A financial covenant requires management to provide financial information to bondholders; a nonfinancial covenant requires management to provide a detailed description of the operations of the company on a yearly basis.
D) A financial covenant requires that the assets of a company have adequate levels of insurance; a nonfinancial covenant requires management to provide a detailed description of the operations of the company on a yearly basis.