When the Corporate Bond Market Becomes More Liquid,other Things Equal,the

question 44

Multiple Choice

When the corporate bond market becomes more liquid,other things equal,the demand curve for corporate bonds shifts to the ________ and the demand curve for Treasury bonds shifts to the ________.

• A) right; right
• B) right; left
• C) left; left
• D) left; right

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Definitions:

Debt Financing

The process of raising capital through borrowing money, which must be repaid with interest.