Which of the Following Is Not a True Statement

question 76

Multiple Choice

Which of the following is not a true statement?

• A) Mortgage bonds are debt instruments that are secured by real assets.
• B) Callable bonds give the issuer the option to "call" or repurchase outstanding bonds at predetermined call prices at specified times.
• C) Retractable bonds allow the bondholder to sell the bonds back to the issuer at predetermined prices at specified times earlier than the maturity date.
• D) Extendible bonds allow the issuer to extend the maturity date of the bond.

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Definitions:

Uniform Commercial Code

A comprehensive set of laws governing all commercial transactions in the United States, intended to standardize the law in all 50 states.

Shelter Principle

A legal rule in property law that protects the rights of a subsequent purchaser if the initial transfer to the seller was valid.

Status

The legal condition or position of an individual or entity in relation to others or the law.

Good Faith

An expectation for parties to act honestly and not mislead or deceive each other in a contract.