Bonds with Relatively Low Risk of Default Are Called ________

question 15

Multiple Choice

Bonds with relatively low risk of default are called ________ securities and have a rating of Baa (or BBB) and above;bonds with ratings below Baa (or BBB) have a higher default risk and are called ________.

• A)investment grade;lower grade
• B)investment grade;junk bonds
• C)high quality;lower grade
• D)high quality;junk bonds

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Definitions:

Dumping

The practice of selling a product in a foreign market at a price below its production cost or domestic price, often aimed at gaining market share or driving out competition.

Export Subsidy

A governmental policy of providing financial support to domestic producers or exporters to encourage exports, lower their prices in global markets, and enhance competitiveness.

Negative Tariff

Generally not a recognized economic term, suggesting a reverse scenario where a government pays subsidies on certain imports rather than applying charges. NO.

Tax

A compulsory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund various public expenditures.