Which Institution Is Least Likely to Default on a Bond

question 26

Multiple Choice

Which institution is least likely to default on a bond?

• A) local government
• B) small corporation
• C) U.S. federal government
• D) large corporation

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Definitions:

Categorical Thinking

The cognitive process of organizing information and perceptions into categories based on common characteristics or attributes.

Sales Figures

Quantitative data representing a company's sales within a specific period, often used as an indicator of business performance.

Incoming Information

Data or facts received from external sources, which can influence decisions, actions, or perceptions.

Social Identity Theory

A psychological theory that explains how individuals categorize themselves and others into groups, affecting their self-concept and behavior in social contexts.