Which of the following statements regarding bonds payable is true? a. a convertible bond can be converted into stock of the issuing company. b. when an issuing company’s bonds are traded in the "secondary" market, the company will receive a service fee when the bonds are sold from the first purchaser to the second purchaser. c. a debenture bond is backed by inventory of the issuing company. d. generally, bonds are issued in denominations of $100.

The prebisch–singer hypothesis concludes that: a. technology lowers the cost of manufactured products, so developing countries should see an increase in their terms of trade. b. developing countries experience a long-run decline in their terms of trade, as the demand for primary products in higher-income countries declines relative to their demand for manufactured goods. c. because of unfair trading practices, labor in developing countries is exploited. d. opec has been responsible for a slowdown in the world's standard of living.