Which One of the Following Statements Concerning a Global View

question 39

Multiple Choice

Which one of the following statements concerning a global view of the bond market is correct?

• A) The United States today accounts for about seventy-five percent of the available fixed- income securities worldwide.
• B) U.S. pay bonds distribute both interest and principal payments in euros.
• C) Foreign bonds, like junk bonds, have high default risk.
• D) Exchange rate fluctuations influence the returns earned on foreign-pay bond holdings.

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Definitions:

Tying

The practice of making the sale of one good conditional on the purchase of an additional, separate good.

Minimum Wage

The lowest legally permissible wage that employers can pay their employees, set by governmental policies.

Uniforms

Standardized clothing worn by members of an organization or team to signify membership and promote unity.

Exclusion

The practice of blocking competitors from participating in a market.