Which of the Following Statements About Floating Rate Preferred Stock

question 103

Multiple Choice

Which of the following statements about floating rate preferred stock is true?

• A) The dividend rate changes quarterly relative to money market rates.
• B) The price of the stock will fluctuate with the market.
• C) The dividend rate is tied to the inflation rate.
• D) The conversion rate changes annually relative to bankers' acceptance rates.

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Definitions:

Federal Government

The national government of a federal state, which shares sovereignty with its subdivisions and has powers distinct from them.

Poverty Rate

The percentage of the population living below the national poverty line, which measures the minimum level of income considered necessary to achieve an adequate standard of living.

Business Cycle

Increases and decreases in the level of business activity that occur at irregular intervals and last for varying lengths of time.

War On Poverty

A set of government policies and programs initiated in the 1960s in the United States aimed at reducing poverty and improving living conditions for the impoverished.