Which of the Following Is NOT a Common Characteristic of Issuing

question 68

Multiple Choice

Which of the following is NOT a common characteristic of issuing short-term debt?

• A)Issuing short-term debt increases uncertainty compared to a long-term fixed-rate issue.
• B)Issuing short-term debt provides more frequent financing opportunities.
• C)Short-term interest rates are typically HIGHER than long-term rates.
• D)Short-term debt financing could be problematic in the event of an economy-wide liquidity crisis.

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Definitions:

Distribution-Free

Refers to statistical methods or tests that do not assume a specific distribution for the underlying population data.

Wilcoxon Rank Sum

A nonparametric statistical hypothesis test used to compare two independent samples to determine if they come from the same distribution.

Approximate Distribution

A statistical term referring to the distribution that is assumed for a dataset based on certain approximations or assumptions.

Sign Test

A non-parametric test used to determine if there is a median difference between paired observations.