Which of the Following Bonds Are Considered to Be Default-Risk

question 64

Multiple Choice

Which of the following bonds are considered to be default-risk free?

• A) Municipal bonds
• B) Investment-grade bonds
• C) Canadian government bonds
• D) Junk bonds

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Definitions:

Geegaws

Trinkets or small, flashy objects of little value; often used to denote cheap or kitschy items.

Comparative Advantage

The ability of an entity to produce a good or service at a lower opportunity cost than another entity.

Geegaws

Ornamental objects of no substantial value, often considered trinkets or gadgets.

Doodads

Informal term for small objects or gadgets, often of little value and used for decoration or trivial purposes.