An Increase in Default Risk on Corporate Bonds ________ the Demand

question 31

Multiple Choice

An increase in default risk on corporate bonds ________ the demand for these bonds,but ________ the demand for default-free bonds,everything else held constant.

• A)increases;lowers
• B)lowers;increases
• C)does not change;greatly increases
• D)moderately lowers;does not change

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Definitions:

Repolarization

The process by which a neuron or muscle cell returns to its resting negative membrane potential after being depolarized.

Hippocampus

Region of the central nervous system associated with learning and memory; part of the limbic system.

Temporal Lobe

A region of the cerebral cortex responsible for processing auditory information and is also involved in speech, memory, and emotion.

Axon

Elongated portion of a neuron that conducts nerve impulses, typically from the cell body to the synapse.