(I)The Risk Premium Widens as the Default Risk on Corporate

question 92

Multiple Choice

(I) The risk premium widens as the default risk on corporate bonds increases.
(II) The risk premium widens as corporate bonds become less liquid.

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

---

Definitions:

Flexible Working Hours

Employment arrangements that allow workers to vary their workday start and end times.

Contingency Workers

Employees who do not have long-term or permanent employment contracts, including freelancers, consultants, and temporary contract workers.

Part-Time

Refers to work or employment that is less than the full number of hours defined as standard, typically offering limited hours of work per week.

Permanent Workforce

Employees who are hired for long-term employment, offering stability and continuity within an organization.