Generally with Bond Ratings, the Lower the Rating, the ________

question 83

Multiple Choice

Generally with bond ratings, the lower the rating, the ________ the interest rate an investor will receive and the ________ the the risk that the issuer of the bond will default.

• A) higher; higher
• B) higher; lower
• C) lower; higher
• D) lower; lower

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Definitions:

Check Register

A record maintained by account holders to track checks written, deposits made, and the current balance of a checking account.

Cash Balance

The amount of cash that a company or an individual has on hand at any given time.

Deposits

Funds placed into an account at a financial institution for safekeeping.

Adjusted Cash Balance

The cash balance reported on a company's financial statements, modified for checks that have not yet cleared or deposits in transit.