Which of the Following Statements Is FALSE

question 64

Multiple Choice

Which of the following statements is FALSE?

• A)A debenture would usually be more risky than a mortgage bond that is issued by the same firm.
• B)A bond will sell at a discount if the prevailing required rate of return is more than the bond's coupon rate.
• C)A short-term bond will fluctuate less in value than a long-term bond if interest rates fluctuate.
• D)Interest rates and bond prices usually move in the same direction.

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Definitions:

Legal Realism

A school of legal thought that holds that the law is only one factor to be considered when deciding cases and that social and economic circumstances should also be taken into account.

Criminal Statutes

Laws enacted by legislatures that define crimes and set forth punishments.

Society

A community of people living together in a more or less ordered community, often with shared laws, traditions, and values.

Wrongs

Actions or conduct that are considered unjust, immoral, or harmful to others, often subject to legal remediation.