The Existence of Rating Agencies Has

question 57

Multiple Choice

The existence of rating agencies has

• A)lowered returns on corporate bonds.
• B)raised returns on corporate bonds.
• C)left returns on corporate bonds largely unaffected.
• D)raised returns on both corporate bonds and Treasury securities.

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Definitions:

Sales Commissions

Payments made to sales employees as a percentage of the sales they generate.

Sales Volume

The total number of units of a product sold within a specific period.

Total Variable Cost

The entire expense that varies directly with changes in production volume, including materials, labor, and other costs that increase or decrease with output level.

Relevant Range

The spectrum of operations where the premises regarding constant and fluctuating expenses hold true.