Which of the Following Statements Is TRUE

question 13

Multiple Choice

Which of the following statements is TRUE?

• A)A liquid asset is one that can be quickly and cheaply converted into cash.
• B)The demand for a bond declines when it becomes less liquid,decreasing the interest rate spread between it and relatively more liquid bonds.
• C)The differences in bond interest rates reflect differences in default risk only.
• D)The corporate bond market is the most liquid bond market.

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Definitions:

Income Security Benefit

Financial assistance provided by government or private entities to individuals, ensuring a minimum level of income for those who are unemployed, disabled, or retired.

Supplemental Unemployment Benefits

Additional financial benefits offered to unemployed individuals that supplement their regular unemployment compensation.

Financial Services

A broad range of services offered by the finance industry, including banking, insurance, investment, and estate planning, among others.

Guaranteed Annual Wage

A financial agreement where an employer ensures an employee receives a minimum income for a specified number of hours worked or not worked over a year.