Which of the Below Statements Is FALSE

question 6

Multiple Choice

Which of the below statements is FALSE?

• A) Prime CDs (those issued by high-rated domestic banks) trade at a lower yield than nonprime CDs (those issued by lower-rated domestic banks).
• B) The yields posted on CDs vary depending on three factors: (1) the credit rating of the issuing bank, (2) the maturity of the CD, and (3) the supply and demand for CDs.
• C) The rate or yield offered on Eurodollar CDs is the prime rate.
• D) Eurodollar CDs are dollar obligations that are payable by an entity operating under a foreign jurisdiction, exposing the holders to a risk (referred to as sovereign risk) that their claim may not be enforced by the foreign jurisdiction.

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Definitions:

Foot-In-The-Door Technique

A persuasive strategy where a smaller request is made first to increase the likelihood of agreement to a larger request later.

Attitude

A predisposition in one's mindset to appraise an entity positively or negatively, indicating favoritism or antipathy.

Behavior

Behavior refers to the actions or reactions of an organism, usually in relation to its environment, which can be observable or measurable.

Milgram's Obedience Experiment

A psychological experiment conducted by Stanley Milgram which measured the willingness of participants to obey an authority figure who instructed them to perform acts conflicting with their personal conscience.