Which of These Statements Is True

question 74

Multiple Choice

Which of these statements is true?

• A)The higher the default risk, the higher the interest rate that security buyers will demand.
• B)The lower the default risk, the higher the interest rate that security buyers will demand.
• C)The higher the default risk, the lower the interest rate that security buyers will demand.
• D)The default risk does not impact the interest rate that security buyers will demand.

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Definitions:

Simple Principles

Basic, fundamental rules or concepts that guide actions, decisions, or procedures.

Confound

A variable other than the one intended to be manipulated by the experimenter that may be responsible for the effect on the dependent variable, making alternative explanations possible.

Clowns

Entertainers who perform comical acts, using makeup and exaggerated expressions to amuse an audience; traditionally associated with circuses, parties, and theatrical performances.

Operational Definition

A specific, concrete method of measuring or manipulating a conceptual variable.