Which One of the Following Statements Is Not True

question 41

Multiple Choice

Which one of the following statements is not true?

• A)Australian government securities do not have any default risk and are the best proxy measure for the risk-free rate.
• B)Investors must pay a premium to purchase a security that exposes them to default risk.
• C)The risk that the lender may not receive payments as promised is called default risk.
• D)All of the above are true statements.

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Definitions:

Somatic Nervous

The part of the peripheral nervous system that handles voluntary control of body movements through the control of skeletal muscles and also mediates sensory information from the external environment.

Physical Reactions

Bodily responses to stimuli, which can include reactions like sweating, shaking, or increased heart rate.

Sensory Stimulus

Any object or event that is input to the senses, leading to a response or recognition from the body or brain.

Reflex

An automatic, involuntary response to a stimulus without the involvement of conscious thought.