Which of the Following Statements Is FALSE

question 87

Multiple Choice

Which of the following statements is FALSE?

• A) The registered bond system facilitates tax collection because the government can easily keep track of all interest payments made.
• B) Asset-backed bonds and mortgage bonds are secured debt, and specific assets are pledged as collateral that bondholders have a direct claim to in the event of bankruptcy.
• C) Notes typically have longer maturities (more than ten years) than debentures.
• D) Although the word "bond" is commonly used to mean any kind of debt security, technically a corporate bond must be secured.

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Definitions:

Cancellation

In mathematics, the process of simplifying expressions by eliminating factors or terms that are common to both the numerator and the denominator.

Add

The mathematical operation of combining two or more quantities to get a total sum.

Fractions

A mathematical expression representing the division of one quantity by another, denoting parts of a whole.

Arabic Numerals

The numeral system of digits used globally (0, 1, 2, 3, etc.), originating from the Arabic-speaking world and now common in most countries.