1. Property pledged to a lender to guarantee payment in the event the borrower defaults is called _____.
lost property
liquid assets
insolvency
collateral
2. The theory of Bureaucratic Behavior suggests that the objective of a government bureaucracy is to ____.
maximize its own welfare
maximize the public's welfare
act in the public's best interest
minimize its own welfare
3. The value of any asset is the ___ of its ___.
future value; future cash flows
future value of past cash flows
present value; future cash flows
present value; past cash flows