Which of the Following Is Not a Way in Which

question 30

Multiple Choice

Which of the following is not a way in which consumers can benefit from report cards?

• A)Easy identification of high quality sellers
• B)Increases in demand elasticity incent sellers to improve quality
• C)Good report cards lead to more advertising
• D)Report cards improve sorting by consumers
• E)Consumers can more easily identify quality sellers

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Definitions:

Market Yield

The annual income returned on an investment divided by its current market price.

Interest Rate Risk

The potential for loss due to a change in interest rates affecting investment values or borrowing costs.

Time To Maturity

The remaining life of a debt instrument, at the end of which the principal is usually repaid.

Coupon Rate

The annual interest rate paid by a bond relative to its face value, expressed as a percentage.