Which of the Following Statements Is True

Multiple Choice

Which of the following statements is true?

A) An example of a covenant is a restriction that limits those actions of the borrower that have an impact on the probability of repayment.
B) An example of a covenant is a restriction that encourages those actions of the borrower that have an impact on the probability of repayment.
C) A covenant is a restriction written into either bond or loan contracts.
D) All of the listed options are correct.