Which One of the Following Statements Is NOT True

question 37

Multiple Choice

Which one of the following statements is NOT true?

• A) The risk that the lender may not receive payments as promised is called default risk.
• B) Investors must pay a premium to purchase a security that exposes them to default risk.
• C) Australian government securities do not have any default risk and are the best proxy measure for the risk-free rate.
• D) All of the above are true statements.

---

Definitions:

Coercive Power

A form of authority that relies on the threat of force or sanctions to influence others' behavior and compliance.

Bases of Individual Power

Refers to the sources from which an individual derives their ability to influence others, such as expertise or position.

Rosabeth Moss Kanter

A renowned professor of business at Harvard Business School, known for her research on change management and confidence.

Power

The ability or capacity to influence or control the behavior of others, often through the possession of knowledge, resources, or authority.