The Spread Between Interest Rates on Low Quality Corporate Bonds

question 45

Multiple Choice

The spread between interest rates on low quality corporate bonds and Canada bonds ________.

• A) widens significantly during recessions
• B) narrows significantly during recessions
• C) narrows moderately during recessions
• D) does not change during recessions

---

Definitions:

Courtship

The period in a couple's relationship which precedes their engagement and marriage, or establishment of an agreed relationship of a more enduring kind.

Emotional Loyalty

A consumer's emotional attachment to a brand, which goes beyond simply purchasing from the brand out of habit or preference.

Evolutionary Perspective

A theoretical approach that explains various aspects of human nature as adaptations made possible by natural selection.

Jealousy

An emotional state that arises from perceived threats to a valued relationship or position, often accompanied by feelings of insecurity and fear of loss.