Which of the Following Statements Is FALSE

question 5

Multiple Choice

Which of the following statements is FALSE?

• A)Almost all bonds that are issued today are registered bonds.
• B)The trust company represents the bondholders and makes sure that the terms of the indenture are enforced.
• C)For private placements,the prospectus must include an indenture,a formal contract between the bond issuer and a trust company.
• D)In the case of default,the trust company represents the bondholders' interests.

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Definitions:

Waste Resources

Materials that are not productively used and are discarded or are considered to be of no economic value.

Efficient

Efficient refers to achieving maximum productivity with minimum wasted effort or expense, often related to the smooth and effective operation of processes.

Effective

Achieving a desired result with the most efficient use of time and resources.

Political Process

The methods and activities through which political decisions and policies are formulated and implemented.