In the Fall of 1998 We Saw an Increase in the Risk

question 16

Multiple Choice

In the fall of 1998 we saw an increase in the risk spread because:

• A) the risk spread always increases as we approach the end of the year.
• B) the Russian government defaulted on some of its bonds.
• C) there was an extraordinarily large amount of corporate fraud being reported in 1998.
• D) there was a significant increase in U.S. income tax rates.

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Definitions:

Mandorla

An almond-shaped nimbus surrounding the figure of Christ or other sacred figure. In Buddhist Japan, a lotus-petal-shaped nimbus.

Polychrome Wood

Wood items decorated with multiple colors of paint, often found in sculptures, religious figures, and decorative arts.

Juan Martínez Montañés

A distinguished Spanish sculptor of the Baroque period, celebrated for his religious sculptures and altarpieces in wood.

Ceiling Fresco

A painting technique where the artwork is applied directly onto the plaster of a ceiling while it is still wet.