Which of the Following Statements Is True

question 57

Multiple Choice

Which of the following statements is true?

• A)The more liquid the bond, the lower the yield.
• B)Tax-free bonds normally have a higher interest rate than other types of bonds.
• C)The price of a bond increases as it becomes more risky.
• D)The yield curve illustrates the relative default risks of alternative types of bonds.

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Definitions:

Union Workers' Wages

The negotiated salaries for employees who are members of a labor union, often higher than non-union wages due to collective bargaining.

Apprenticeships

Formal training programs that combine on-the-job training with classroom education, typically in a trade or profession.

Oxygen-Enrichment Process

A process that increases the concentration of oxygen in a mixture or environment, often used in industrial applications to enhance combustion or chemical reactions.

Energy Required

The amount of energy needed to perform a particular task or process, such as manufacturing a product or operating a machine.