Which of the Following Statements Is True

question 2

Multiple Choice

Which of the following statements is true?

• A) A liquid asset is one that can be quickly and cheaply converted into cash.
• B) The demand for a bond declines when it becomes less liquid, decreasing the interest rate spread between it and relatively more liquid bonds.
• C) The differences in bond interest rates reflect differences in default risk only.
• D) The corporate bond market is the most liquid bond market.

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Definitions:

Reinforced

Pertains to a behavior that is strengthened or made more likely to occur in the future because it has been associated with a positive or negative reinforcement.

Asocial Style

Displaying a lack of interest in social interactions or a preference for solitude over engaging with others.

Sociability

The quality of being sociable, or the willingness to engage in social interactions.

Social Anxiety

The fear of social situations that involve interaction with other people, primarily driven by worries of being judged or embarrassed.