The Major External Sources of Credit Information Are All of the Following

question 58

Multiple Choice

The major external sources of credit information are all of the following EXCEPT

• A) a financial statement.
• B) Dun & Bradstreet.
• C) customers.
• D) bank checking.

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Definitions:

Maturity Risk

The risk of loss to an investor from changes in the price of a bond that arise from changes in the market interest rate. Also called price risk and interest rate risk. The term maturity risk emphasizes the fact that interest-induced price changes are larger with longer maturities.

Bond Prices

The market price for which a bond is bought or sold, influenced by interest rates, credit quality, and other factors.

Interest Rate Movements

Fluctuations in the interest rate over time which can affect borrowing costs and investment returns.

Stock and Bond Markets

Financial markets where shares of publicly held companies are issued and traded, and where debt securities are bought and sold.