Which of the Following Statements Is True

question 21

Multiple Choice

Which of the following statements is true?

• A) Treasury bonds have zero default risk.
• B) The longer the maturity of a bond, the more risky it is.
• C) The real risk-free rate incorporates inflation premium.
• D) Liquidity premium is included only for highly liquid securities.
• E) The default risk is high for AAA rated corporate bonds.

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Definitions:

Positive Reinforcer

A stimulus which, when presented after a specific behavior, increases the likelihood of that behavior occurring in the future, often seen as beneficial or rewarding.

Desired Behavior

Specific actions or reactions that an individual or organization wishes to encourage or establish as a norm.

Employee

An individual who works for another person or organization in exchange for compensation.

Value

pertains to the importance, worth, or usefulness of something, often influencing choices and behaviors.