Because Long-Term Securities Face Greater Risk of Capital Loss Than

question 42

Multiple Choice

Because long-term securities face greater risk of capital loss than do short-term securities,investors generally:

• A) pay a higher price for long-term securities.
• B) require a higher yield on long-term securities.
• C) require a lower yield on long-term securities.
• D) stay away from long-term securities.

---

Definitions:

Ventricle

(1) One of four interconnected chambers in the brain through which cerebrospinal fluid flows. (2) One of the chambers of the heart that receives blood from an atrium and pumps blood into arteries.

Pacemaker

An artificial device implanted in the body which uses electrical impulses to regulate the heart's rhythm or reproduce that rhythm.

Atrioventricular Node

A part of the heart's electrical system which regulates the timing of the heartbeats by delaying the transmission of electrical impulses from the atria to the ventricles.

Sinoatrial Node

A small group of cardiac cells located in the right atrium of the heart that regulates the heart's rhythmic rate by acting as a natural pacemaker.