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A Bond Is a Paper IOU That Allows the Bearer

Question 18

Multiple Choice

A bond is a paper IOU that allows the bearer to earn interest.The bond buyer would be best described as:


A) a demander of loanable funds.
B) a supplier of loanable funds.
C) a financial intermediary.
D) one who borrows.
E) both a financial intermediary and a borrower.

Correct Answer:

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