If the Probability of a Bond Default Increases Because Corporations

question 108

Multiple Choice

If the probability of a bond default increases because corporations begin to suffer large losses,then the default risk on corporate bonds will ________ and the expected return on these bonds will ________,everything else held constant.

• A)decrease;increase
• B)decrease;decrease
• C)increase;increase
• D)increase;decrease

Distinguish between expenditures included and excluded in the consumption component of GDP.

Understand the role of government spending, net exports, and investments in GDP calculation.

Recognize how GDP reflects the economic performance of a country.

Understand the double-entry bookkeeping system used to track the economy in relation to GDP.

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Definitions:

Hippocampus

A region of the brain that is associated with memory formation and spatial navigation.

Cerebellum

A part of the brain located at the back of the skull, responsible for coordinating voluntary movements, balance, and posture.

Treble Clef

A musical symbol used to indicate the pitch of written notes placed on one of the lines at the very beginning of the staff.

Mnemonic

A memory aid, often using patterns of letters, ideas, or associations to help in remembering something.