During Recessions, Yield Spreads Tend To

question 39

Multiple Choice

During recessions, yield spreads tend to:

• A) narrow, whereas they generally widen during economic expansions.
• B) widen, whereas they generally narrow during economic expansions.
• C) narrow and they also generally narrow during economic expansions.
• D) widen and they also generally widen during economic expansions.

---

Definitions:

First-Mover Strategy

A market approach where a company is the first to enter a specific market or industry, aiming to gain an advantage by establishing brand loyalty and erecting barriers to entry for future competitors.

Market Share

The portion of a market controlled by a particular company or product, often expressed as a percentage of total sales in that market.

Global Diversification

A strategy that involves a company expanding its operations and investments across a wide range of countries and markets to reduce risk.

Consumer Durables

Goods that are not consumed or destroyed in use and thus have a long life, such as appliances, cars, and furniture.