Junk Bonds Are Bonds That

question 52

Multiple Choice

Junk bonds are bonds that

• A) are of good quality and have a low credit risk.
• B) are registered in the name of the owner.
• C) are considered speculative and have a high risk of default.
• D) are unsecured.

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Definitions:

Consumption Goods

Goods that are intended and consumed by individuals or households to satisfy their immediate wants and needs.

Perfect Complements

Goods that are often used together in fixed proportions, where the utility of one item increases with the usage of the other.

Wage Rate

The amount of money paid to an employee per unit of time, often per hour or day.

Utility Function

A mathematical representation in economics that captures an individual's preference ranking for different bundles of goods or outcomes.