China's Rising Economy Is Creating a Large Demand for

question 47

Multiple Choice

China's rising economy is creating a large demand for

• A) investment bankers.
• B) tacos.
• C) luxury goods.
• D) cars.

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Definitions:

Default Risk Premiums

The additional yield that investors require to hold debt that has a risk of default over a risk-free debt instrument.

Yield

Yield is the earnings generated and realized on an investment over a particular period of time, expressed as a percentage of the investment’s cost or current market value.

Treasury Bond

A long-term government bond with a maturity of more than 10 years used to fund federal expenditures.

Default Risk Premiums

The extra yield that an investor demands to compensate for the risk that the issuer of a bond may default on payment.