If the Issuer of a Bond Does Not Pay Its

question 24

Multiple Choice

If the issuer of a bond does not pay its promised payments, the issuer:

• A)defaults.
• B)diversifies.
• C)depreciates.
• D)divests.

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Definitions:

Adults

Individuals who have reached a specific age or maturity level, generally considered to be the age at which they can assume legal rights and responsibilities.

Unemployed

Individuals who are jobless, actively seeking work, and available to take up employment.

Structural Unemployment

Unemployment that results from industrial reorganization, typically due to technological change, rather than fluctuations in supply or demand.

Cyclical Unemployment

A type of unemployment that results from business cycle fluctuations in the economy, typically increasing during recessions and decreasing during expansions.