Which of the Following Is Correct

question 170

Multiple Choice

Which of the following is correct?

• A)Some bonds have terms as short as a few months.
• B)Because they are so risky,junk bonds pay a low rate of interest.
• C)Corporations buy bonds to raise funds.
• D)All of the above are correct.

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Definitions:

Mutual Gains

Benefits or advantages that are shared among parties in a transaction or negotiation, leading to a situation where all involved parties end up better off.

Insurance Industry

A sector of the financial services market that provides risk management through contractually agreed-upon financial protection against losses.

Capital at Risk

The amount of capital that could be lost in an investment due to risk factors.

Company's Liabilities

Financial obligations a company owes to outside parties, including debts, loans, and other forms of financial liabilities.