Which of the Following Is a Characteristic of the Bond

question 127

Multiple Choice

Which of the following is a characteristic of the bond market?

• A)Some bonds have terms as short as a few months.
• B)Because they are risky, bonds pay a low rate of interest.
• C)Corporations buy bonds to raise funds.
• D)Bonds are rarely used as financial instruments.

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Definitions:

Chapter 7 Bankruptcy

A chapter of the Bankruptcy Code that provides for the liquidation of a debtor's non-exempt assets to pay off creditors.

Automatic Stay

A legal provision that temporarily stops lawsuits, foreclosures, garnishments, and all collection activity against a debtor the moment a bankruptcy petition is filed.

Secured Creditors

Creditors who have a legal right to seize specific assets of the borrower if the borrower fails to repay the debt as agreed.

Child Support Payments

Financial contributions required by law to be paid by a non-custodial parent to support the wellbeing and living expenses of their children.