Which of the Following Is False

question 84

Multiple Choice

Which of the following is false?

• A) As the price paid for a bond rises, the yield declines.
• B) If you purchase stock from an individual that currently owns the stock, you are buying it in the secondary market.
• C) The yield on a bond is another term for the coupon rate on a bond.
• D) A rating of Aaa from Moody's is the highest bond rating given by that rating agency.

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Definitions:

Startle

A quick, involuntary reaction or movement in response to a sudden, unexpected stimulus.

Clapping Hands

The action of striking the palms together to produce sound, often used as a means of showing approval or keeping rhythm.

Localize

The process of identifying or confining something (such as a condition or sensation) to a specific area or part of the body.