Which of the Following Statements Is Correct

question 14

Multiple Choice

Which of the following statements is correct?

• A)If the maturity risk premium were zero and interest rates were expected to decrease in the future, then the yield curve for government securities would, other things held constant, have an upward slope.
• B)Liquidity premiums are generally higher on government than corporate bonds.
• C)Default risk premiums are generally lower on corporate than on government bonds.
• D)Reinvestment rate risk is lower, other things held constant, on long-term than on short-term bonds.

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Definitions:

Nervous System

A complex network of nerves and cells that carry messages to and from the brain and spinal cord to various parts of the body.

Peripheral Nervous

A part of the nervous system consisting of the nerves and ganglia outside of the brain and spinal cord.

Autonomic Nervous

Part of the peripheral nervous system that controls involuntary functions of the body such as heart rate, digestion, and respiratory rate, comprising the sympathetic and parasympathetic nervous systems.

Emergency

A situation that poses an immediate risk to health, life, property, or environment requiring urgent intervention.