'Flight to Quality' Implies Buying Bonds with High Credit Ratings

question 52

True/False

'Flight to quality' implies buying bonds with high credit ratings (low default risk)and selling bonds with low credit ratings.

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Definitions:

Reasonable Person

A hypothetical individual in society who exercises average care, skill, and judgment in conduct and who serves as a comparative standard for determining liability.

Res Ipsa Loquitur

A legal doctrine allowing the presumption of negligence in a case where the exact cause of harm is unknown but it is clear the defendant had control.

Superior Skill

Exceptional ability or proficiency in a particular area, often surpassing the ordinary or expected level of expertise.

Abnormally Dangerous

Activities or conditions that inherently pose a high risk of harm to others, even when reasonable care is taken.