Question

question 10
restrictions on asset sales and borrowing in bond indenture are often known as?
a none of these are correct
b limitation covenants
c protective covenants
d restrictive clauses
e affirmative covenants
1.5 points

Explanation:

Restrictive clauses in bond indentures are designed to limit the actions of the borrower, such as restrictions on asset sales and borrowing. Protective covenants is a more general term that includes both affirmative and restrictive covenants. Limitation covenants is not a standard term. Affirmative covenants require the borrower to take certain actions (e.g., maintain insurance), not restrict actions. Since the question is about restrictions, restrictive clauses is the most accurate term among the options.

Answer:

D. restrictive clauses