In 2016,as Investors Became More Concerned with the Default Risk

question 63

Multiple Choice

In 2016,as investors became more concerned with the default risk of bonds issued by the governments of Greece and Portugal relative to the default risk on bonds issued by the governments of Germany,France,and the Netherlands,the price of bonds issued by Greece and Portugal would have most likely ________ and the yield on those bonds would have most likely ________.

• A) increased; increased
• B) increased; decreased
• C) decreased; increased
• D) decreased; decreased

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Definitions:

Gross Method

An accounting practice for recording inventory purchases without deducing available purchase discounts, presenting the gross cost in financial statements.

Cash Payment

Cash payment refers to transactions where the payment for goods or services is made immediately using physical currency or through electronic means that represent immediate funds transfer.

Merchandise Return

Occurs when a customer returns a product to the seller for a refund or exchange due to dissatisfaction or defects.

Perpetual Inventory System

An inventory management system that tracks the sale and restock of inventory items in real-time.