Factors That Decrease the Demand for Bonds Include

question 56

Multiple Choice

Factors that decrease the demand for bonds include

• A)an increase in the volatility of stock prices.
• B)a decrease in the expected returns on stocks.
• C)a decrease in the inflation rate.
• D)a decrease in the riskiness of stocks.

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Definitions:

Current Taxes Payable

This refers to the amount of taxes a company is obligated to pay to the government within the current fiscal year, not yet paid.

IRS

The Internal Revenue Service, a U.S. government agency responsible for the collection of taxes and enforcement of tax laws.

Reversing Temporary Difference

An accounting adjustment that reverses differences between tax and financial reporting over time.

Originating Temporary Difference

A difference that arises in a particular period between the book income and taxable income, which is expected to reverse in the future.