If Moody's or Standard and Poor's Downgrades Its Rating on a Corporate

question 43

Multiple Choice

If Moody's or Standard and Poor's downgrades its rating on a corporate bond,the demand for the bond ________ and its yield ________.

• A) increases; decreases
• B) decreases; increases
• C) increases; increases
• D) decreases; decreases

---

Definitions:

Social Structures

The complex framework of societal institutions (such as the economy, politics, and family) and the social practices (norms, rules, and roles) that make up a society and organize and limit the actions of its members.

Robert Merton

Robert Merton was an American sociologist known for his theories on social structure and anomie.

Talcott Parsons

A prominent American sociologist known for his contributions to social action theory and for developing a framework for the study of society that emphasized the functional relationships between its parts.

Service Sector

The segment of the economy that provides intangible goods and services, including healthcare, education, entertainment, and financial services, among others.