Which of the Following Statements Is FALSE

question 55

Multiple Choice

Which of the following statements is FALSE?

• A)The United States was the world's largest economy in
• 2014.
• B)Global trade has helped lift hundreds of millions of Chinese out of poverty.
• C)The presence of a few dominant companies in an industry makes it more difficult for entrepreneurs to start a business in that sector.
• D)Around the world,consumers are showing a robust appetite for the sharing-based economy.
• E)Most Americans use their mobile devices for getting directions or listening to music rather than making purchases.

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Definitions:

Deferred Call

Call provision prohibiting the company from redeeming the bond before a certain date.

Coupon Rate

The interest rate on a bond, expressed as a percentage of the bond's face value, paid by the bond issuer to the bondholder at specified intervals.

Zero-Coupon Bond

A bond that does not pay periodic interest, but is issued at a deep discount, with the return being the difference between the purchase price and the face value at maturity.

Stripped Bond

A debt security where the principal and regular coupon payments have been separated and are sold as individual securities.