Consider a Supply and Demand Model of Bonds for Company

question 92

Multiple Choice

Consider a supply and demand model of bonds for company X.Which of the following would one expect to happen if the default risk decreases for company X?

• A) The demand curve will shift to the right,causing the price of the bond to rise.
• B) The demand curve will shift to the left,causing the price of the bond to rise.
• C) The supply curve will shift to the right,causing the price of the bond to fall.
• D) The demand curve will shift to the left,causing the price of the bond to fall.
• E) The supply curve will shift to the left,causing the price of the bond to rise.

---

Definitions:

Decision Makers

Individuals or groups responsible for making choices that resolve problems or pursue opportunities.

Tundra Soils

Soil found in the tundra biome, characterized by freezing temperatures and limited decomposition, resulting in thin soil layers with minimal nutrients.

Arctic Tundra

a cold, vast, treeless area in the Arctic region characterized by permafrost, low temperatures, and minimal vegetation.

Oceanic Mud

Fine-grained sediments found on the ocean floor, composed of particles of rock, minerals, and organic matter.