Question

Which term describes the practice of paying a sum of money as compensation for loss?

Answer 1

Seems to me that the answers c. indemnity

Answer 2

Answer:

Correct option is C.

Step-by-step explanation:

we have to choose the term that describes the practice of paying a sum of money as compensation for loss.

Face value is the nominal value of a security stated by the issuer. For stocks, it is the original cost of the stock shown on certificate. It is the amount paid to the holder at maturity, generally $1,000 in bonds.  

The present value of the bonds will equal the face value of the bonds when the investor's market interest rate is equal to bond's contractual interest rate.

Basic value: An often arbitrary figure used as the initial value of an index. All future values of the index are comparisons against the base value.

Indemnity is a sum of money paid as compensation, especially one paid by a country defeated in war as a condition of peace.

Hence, correct option is C.