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:

Legal Realists

A group of scholars who argue that law is not a set of abstract rules but is influenced by social and political factors.

Law in Action

A principle focusing on how laws are applied and enforced in real life, as opposed to theoretical or doctrinal interpretations.

Public Officials

Individuals holding positions of authority in governmental organizations, responsible for implementing public policy, making decisions, or overseeing public resources.

Bicameral Legislature

A legislative body made up of two branches or chambers, like the House of Representatives and the Senate in the U.S. Congress.