The Risk That Interest Payments Will Not Be Made,or That

question 91

Multiple Choice

The risk that interest payments will not be made,or that the face value of a bond is not repaid when a bond matures is

• A) interest rate risk.
• B) inflation risk.
• C) moral hazard.
• D) default risk.

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Definitions:

Inventory Control

The regulation of inventory levels within a business to manage supply, minimize costs, and prevent shortages or surpluses.

Just-In-Time (JIT) System

A supply chain management strategy that reduces inventory costs by delivering raw materials and components just as they are needed in the production process.

Sudden Increase In Demand

A rapid and unexpected rise in the desire or need for a specific product or service, which can impact market dynamics.