Which Security Below Should We Use as a Benchmark to Measure

question 45

Multiple Choice

Which security below should we use as a benchmark to measure the default risk of a 3-year bond issued by a bank?

• A)3-year Commonwealth government bond
• B)1-year bond issued by a bank
• C)3-year Corporate bond
• D)There are not enough data to conclude.

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Definitions:

Functioning Cones

Photoreceptor cells in the retina of the eye responsible for color vision and function best in relatively bright light.

Black and White

Often used to describe situations that are viewed in terms of two clear, opposing positions or choices, with no gray areas in between.

Dim Light

A lighting condition characterized by a low level of illumination, often creating a subdued or intimate atmosphere.

Receptor Eye

Specialized cells located in the eye that convert light into neurotransmitters to produce visual images. This term is not exactly standard, and a more accurate phrase might be "photoreceptor cells in the eye."