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Banks Are Generally Not Allowed to Invest in Speculative Grade

question 45

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Banks are generally not allowed to invest in speculative grade bonds.What kind of risk is this designed to limit?


Definitions:

Age Discrimination in Employment Act

A U.S. law that forbids employment discrimination against anyone at least 40 years of age in the United States.

State Legislature

The legislative body of a state in the United States, responsible for creating laws and budgets within that state.

Union

An organization, especially of workers, formed to protect and advance the rights and interests of its members, typically regarding wages, working conditions, and employment terms.

Increasing Benefits

Enhancing or expanding the advantages or positive outcomes provided by a service, policy, or program over time.

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