If the Possibility of a Default Increases Because Corporations Begin

question 57

Multiple Choice

If the possibility of a default increases because corporations begin to suffer losses,then the default risk on corporate bonds will ________,and the bonds' returns will become ________ uncertain,meaning that the expected return on these bonds will decrease,everything else held constant.

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

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Definitions:

Ethics

Ethics is the branch of philosophy that deals with questions about morality, values, and principles of right and wrong behavior.

Responsibility

The obligation to carry out duties or tasks effectively and being accountable for the outcomes.

Intercultural Communication Skills

The ability to communicate effectively and appropriately with people of other cultures, understanding cultural differences in verbal and non-verbal communication.

Cultural Biases

Refers to the prejudices or predispositions toward certain cultures or cultural practices, often stemming from one's own cultural background.