As a Result of the Perceived Riskiness of Alternative Investments

question 18

Multiple Choice

As a result of the perceived riskiness of alternative investments following the financial crisis of 2007-2009,the bond market was affected in all of the following ways EXCEPT

• A) higher demand for bonds.
• B) higher real interest rates.
• C) lower nominal interest rates.
• D) higher price of bonds.

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Definitions:

Corporate Default

Occurs when a company fails to meet its legal obligations or promises, especially regarding the repayment of its debts.

Legal Expenses

Costs incurred by a business or individual for legal services, including lawyer fees, court fees, and other expenses related to legal processes.