Which of the Following Statements Is Correct with Respect to Bonds

question 140

Multiple Choice

Which of the following statements is correct with respect to bonds?

• A) Nearly all secondary trading of bonds occurs in the over-the-counter market.
• B) Over the years,bonds have become steadily less important as a source of long-term funds for corporations.
• C) From an investor's perspective,debentures are generally a better investment than bearer bonds.
• D) When an investor hears that a bond has a sinking fund,that is a sign that the company is in financial trouble.
• E) All of these statements are correct.

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Definitions:

Rewarded Behavior

Actions that are positively reinforced, increasing the likelihood of their recurrence.

Discriminative Stimulus

In operant conditioning, a stimulus that indicates that reinforcement is available.

Skinner Box

An experimental apparatus developed by B.F. Skinner for studying behavioral conditioning in animals, typically involving a lever they press to receive a reward.

Green Light

In general use, to give permission or approval to proceed with a project, idea, or situation.