Which of the Following Statements Is Most Correct

question 99

Multiple Choice

Which of the following statements is most correct?

• A) More firms fail or suffer financial distress during periods of economic expansion than during periods of economic recession. Thus, investors tend to require higher premiums to compensate for default risk when the economy is in a recession or is expected to enter one.
• B) More firms fail or suffer financial distress during periods of recession than during periods of economic expansion. Thus, investors tend to require lower premiums to compensate for default risk when the economy is in a recession or is expected to enter one.
• C) Fewer firms fail or suffer financial distress during periods of recession than during periods of economic expansion. Thus, investors tend to require higher premiums to compensate for default risk when the economy is in a recession or is expected to enter one.
• D) More firms fail or suffer financial distress during periods of recession than during periods of economic expansion. Thus, investors tend to require higher premiums to compensate for default risk when the economy is in a recession or is expected to enter one.

---

Definitions:

Contingency Management

A behavioral therapy approach where desirable behavior is reinforced with rewards, while undesirable behavior is not, to foster behavior change.

Drug-Free Screenings

Procedures to test individuals for the absence of illicit drugs or substances in their system, typically used in employment or legal settings.

Community-Based

Pertaining to services or activities that are located within and designed to serve a particular local community.

Cash Prizes

Monetary awards given to contestants or participants in competitions, contests, or sweepstakes as a form of incentive or reward.