A Company That Retains a High Bond Rating During a Recession

question 61

Multiple Choice

A company that retains a high bond rating during a recession in which many other companies see their bond ratings cut will experience

• A)an increased flow of funds into the market for its securities.
• B)an increased demand for its securities, driving up the expected return on them.
• C)a decreased demand for its securities, driving down the expected return on them.
• D)a decreased flow of funds into the market for its securities.

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Definitions:

Audition

The perception or action of listening.

Vestibular Sense

A sensory system located in the inner ear that contributes to balance and spatial orientation by detecting changes in motion and gravitational forces.

Kinesthesis

The sense that detects body position, movement, and balance, often referred to as the sense of muscular movement.

Cocking Head

The action of tilting or turning the head to one side, often as a gesture of curiosity, listening, or confusion.