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.

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Definitions:

Revocation And Rejection

Revocation and Rejection involve the withdrawal of an offer before acceptance or the refusal to accept an offer, respectively, in contract law.

Same Rights

The equal entitlements or privileges afforded to all individuals within a specified group or context.

Reasonable Number

A reasonable number is a quantity or amount considered to be fair, sensible, or appropriate under the circumstances, often used in legal and business contexts.

Breach The Contract

Not meeting any provision of a pact, either in writing or spoken, without an acceptable legal justification.