Wide Credit Spreads

question 95

Multiple Choice

Wide credit spreads:

• A)represent a low price for risk
• B)show that investors are concerned about the risks posed by bonds
• C)occur when investors are very confident in the ability of borrowers to repay debt
• D)tend to narrow during times of crisis, like the GFC
• E)increase the profitability of trading for bond dealers.

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Definitions:

Recall

The act of retrieving information or events from the past in the absence of an explicit cue.

Recall

The mental process of retrieving information or events from the past without the help of cues.

Mnemonist

A Mnemonist is an individual with the ability to remember and recall unusually large amounts of information, often in great detail.

False Memories

False memories are recollections of events that did not actually happen or are a distortion of actual events, often a result of suggestive questioning, misinformation, or misattribution of the original source.