Which of the Following Statements Is FALSE

question 17

Multiple Choice

Which of the following statements is FALSE?

• A)Bond ratings encourage widespread investor participation and relatively liquid markets.
• B)Bonds in the top four categories are often referred to as investment grade bonds.
• C)A bond's rating depends on the risk of bankruptcy as well as the bondholder's ability to lay claim to the firm's assets in the event of a bankruptcy.
• D)Debt issues with a low-priority claim in bankruptcy will have a better rating than issues from the same company that have a higher priority in bankruptcy.

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Definitions:

Cleveland Visitors Bureau

An organization tasked with promoting tourism and attracting visitors to the Cleveland area.

Weekend Getaway

A short trip taken for leisure, typically over a weekend period, to relax and escape from routine.

Inverse Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity demanded, where the price is on the vertical axis and quantity on the horizontal axis.

Marginal Costs

The extra expense associated with manufacturing an additional unit of a product or service.