If the Government Makes It Easier to Buy Its Bonds

question 2

Multiple Choice

If the government makes it easier to buy its bonds online, the risk premia for corporate bonds will

• A) increase.
• B) decrease.
• C) stay the same.
• D) cannot be determined.

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Definitions:

Clan Culture

A corporate culture that emphasizes familial-like relationships, teamwork, and a shared sense of loyalty and commitment among employees.

Job Security

The assurance or likelihood that an individual will retain their job without the risk of becoming unemployed.

Clan Culture

Refers to a family-like or tribe-like type of corporate environment that emphasizes consensus, commonality of goals, and participation among its members.

Teamwork

The collaborative effort of a group to achieve a common goal or complete a task in the most efficient and effective way.