Individual Borrowers - Whether They Be Governments or Companies -

question 13

Multiple Choice

Individual borrowers - whether they be governments or companies - possess their own individual credit rating, the market's assessment of their ability to repay debt in a timely manner. These credit assessments influence all the following EXCEPT:

• A) cost of capital.
• B) access to capital.
• C) credit risk premium.
• D) risk-free rate.

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Definitions:

Ethical Malpractice

Actions by a professional that are morally wrong and violate ethical codes, often leading to harm or disadvantage to others.

Match-up Hypothesis

A theory suggesting that the effectiveness of an advertisement is more likely when there is a congruent match between the endorser and the product being endorsed.

Weatherman

An individual who reports and forecasts weather conditions.

Celebrity Endorser

A famous person who promotes or publicly supports a product, service, or brand.