One of the Overall Objectives in Using Subordinated Debt in Addition

question 22

True/False

One of the overall objectives in using subordinated debt in addition to common stock for a DI's capital base is to improve market discipline of a DI's risk structure.

---

Definitions:

Tee Shirts

A type of clothing characterized by short sleeves and a round neckline without a collar, commonly made of cotton or polyester.

Candy

A sweet food made primarily of sugar or syrup combined with flavoring, colorants, and sometimes chocolate or nuts.

Marginal Rate

Often refers to the additional rate of tax that applies to each extra dollar of income or the additional rate of return.

Candy

Sweet confections made from sugar and other ingredients, popular as a treat or snack.