The Risk That a Bond's Creditworthiness Declines Is Best Described

question 30

Multiple Choice

The risk that a bond's creditworthiness declines is best described by:

• A) credit migration risk.
• B) market liquidity risk.
• C) spread widening risk.

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Definitions:

Social Motivation

The drive behind individuals' efforts to engage with, contribute to, or be accepted by their social environment and communities.

Individual Agency

The capacity of individuals to act independently and make free choices, shaping their own lives.

Social Fact

Elements such as norms, values, and structures that exist external to the individual and exert influence over them, as defined by sociologist Émile Durkheim.

Émile Durkheim

A founding figure in sociology known for his work on social cohesion, collective conscience, and the study of social facts as phenomena external to individuals.