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:

Temporary Project Team

A group of individuals assembled to complete a specific project or task within a limited time frame.

Software Development

The comprehensive process involving the conception, specification, design, programming, documentation, testing, and bug fixing involved in creating and maintaining applications, frameworks, or other software components.

Interdependence

The mutual reliance between two or more groups, organisms, or systems for benefits or survival.

Direct Competition

Refers to the rivalry between businesses that offer the same or similar products or services to the same customer base.