If Fear of Default on Bonds Issued by U

question 370

Multiple Choice

If fear of default on bonds issued by U.S. corporations rise, then

• A)net capital outflow and the exchange rate both rise.
• B)net capital outflow rises and the exchange rate falls.
• C)net capital outflow falls and the exchange rate rises.
• D)net capital outflow and the exchange rate both fall.

---

Definitions:

Minor

An individual under the legal age of adulthood, usually under 18, with certain restrictions on their legal rights and responsibilities.

Exculpatory Clauses

Provisions in a contract that release one party from liability for wrongful acts or negligence.

Illegal

Activities or actions that are forbidden by law and subject to penalties.

Parents

Individuals who have a biological or legal responsibility for raising and caring for a child.