Debt Securities Are Often Called Fixed-Income Securities Because

question 22

Multiple Choice

Debt securities are often called fixed-income securities because

• A) the government fixes the maximum rate that can be paid on bonds.
• B) they are held predominantly by older people who are living on fixed incomes.
• C) they pay a fixed amount at maturity.
• D) they promise either a fixed stream of income or a stream of income determined by a specific formula.
• E) they were the first type of investment offered to the public which allowed them to "fix" their income at a higher level by investing in bonds.

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Definitions:

Independent Variable

In an experiment, it is the variable that is manipulated or changed by the researcher to observe its effects on the dependent variable.

Random Assignment

A method used in experiments to place participants into groups in a way that each has an equal chance of being assigned to any group, minimizing biases.

Independent Variable

The variable in an experiment that is manipulated by the researcher to observe its effect on the dependent variable.

Dependent Variable

In experimental and statistical research, the variable that is being tested and measured, and is expected to change as a result of manipulations to the independent variable.