An Increase in Default Risk on Corporate Bonds ________ the Demand

question 31

Multiple Choice

An increase in default risk on corporate bonds ________ the demand for these bonds,but ________ the demand for default-free bonds,everything else held constant.

• A)increases;lowers
• B)lowers;increases
• C)does not change;greatly increases
• D)moderately lowers;does not change

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Definitions:

Materials Management

The branch of logistics that focuses on physically sourcing, moving, and storing materials, as well as coordinating these operations to ensure the right materials are available at the right time.

Logistics Function

The specific tasks and operations within logistics, focusing on the efficient and effective movement and storage of goods.

Time Utilities

The value added to products or services by making them available when they are needed or wanted by consumers.

Place Utilities

The value added to products by having them available at locations where they are needed or wanted by consumers.