Which of the Below Statements Is TRUE

question 23

Multiple Choice

Which of the below statements is TRUE?

• A) Investing in bankers acceptances exposes the investor to market risk, which is the risk that neither the borrower nor the accepting bank will be able to pay the principal due at the maturity date.
• B) The market interest rates that acceptances offer investors reflect credit risk because BAs have lower yields than risk-free Treasury bills.
• C) The spread between bankers acceptance rates and Treasury rates represents a combined reward to investors for bearing the higher risk and relative illiquidity of the acceptance.
• D) The investor in a bankers acceptance is not exposed to credit risk

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Definitions:

Labor Migration

The relocation of individuals from one region to another with the aim of finding work.

Labor Unions

Organizations representing workers' interests, focusing on negotiating wages, work rules, complaint procedures, rules governing hiring, firing, and promotion of workers, benefits, workplace safety and policies.

International Migrants

Individuals who move from one country to another, either temporarily or permanently, for reasons such as employment, education, or to escape conflict.

Home Countries

Refers to the countries where multinational corporations are headquartered.