(I)An Increase in Default Risk on Corporate Bonds Shifts the Demand

question 60

Multiple Choice

(I) An increase in default risk on corporate bonds shifts the demand curve for corporate bonds to the left.
(II) An increase in default risk on corporate bonds shifts the demand curve for Treasury bonds to the right.

• A) (I) is true, (II) false.
• B) (I) is false, (II) true.
• C) Both are true.
• D) Both are false.

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Definitions:

Good Citizenry

The behavior of individuals or organizations that reflects commitment to the well-being of society and the environment, often going beyond legal or economic obligations.

Society

A community of individuals bound together by shared customs, laws, and social institutions, exhibiting a distinctive culture and norms.

Environment

Refers to the surrounding conditions in which an organism, organization, or system operates, including natural, social, and built contexts.

Corporate Social Responsibility

An entrepreneurial tactic aimed at sustaining growth through the provision of benefits across economic, social, and environmental spheres for all involved parties.