If the Possibility of a Default Increases Because Corporations Begin

question 57

Multiple Choice

If the possibility of a default increases because corporations begin to suffer losses,then the default risk on corporate bonds will ________,and the bonds' returns will become ________ uncertain,meaning that the expected return on these bonds will decrease,everything else held constant.

• A)increase;less
• B)increase;more
• C)decrease;less
• D)decrease;more

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Definitions:

Drug Addiction

Drug addiction is a chronic disease characterized by compulsive, or uncontrollable, drug seeking and use despite harmful consequences.

Care Stress

the stress experienced by caregivers due to the demands and responsibilities of caring for someone, often leading to emotional, physical, and financial strain.

Child Abuse

Any act or failure to act that results in harm, potential for harm, or threat of harm to a child, including physical, emotional, or sexual abuse, as well as neglect.

Teenage Child

An individual in the developmental stage between childhood and adulthood, typically ranging from 13 to 19 years old.