Which of the Following Bond Ratings Would Be for Junk

question 2

Multiple Choice

Which of the following bond ratings would be for junk bonds?

• A)BBB
• B)A
• C)BB
• D)AAA
• E)AA

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Definitions:

GDP

Gross Domestic Product, a measure of the total economic output of a country, representing the total value of all goods and services produced over a specific time period.

Natural Resources

Raw materials and components found in nature that can be used to produce goods and provide services, such as water, forests, and minerals.

Scarcer Over Time

indicates that a resource or good is becoming less available or more difficult to obtain as time progresses.

Saving Rate

The proportion of income that is not spent, but instead saved by individuals, households or the nation as a whole.