Which of the Following Statements Regarding the Private Debt Market

question 34

Multiple Choice

Which of the following statements regarding the private debt market is FALSE?

• A)Private debt has the advantage that it avoids the cost of registration.
• B)Bank loans are an example of private debt,debt that is not publicly traded.
• C)Private debt has the disadvantage of being illiquid.
• D)The public debt market is larger than the private debt market.

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Definitions:

Economic Growth

An increase in a country's capacity to produce goods and services, reflected over time in a rise in the national income and standard of living.

Production Possibilities Curve

A graphical representation showing the maximum quantity of goods and services that can be produced within an economy given available resources and technology.

Unemployment Rate

The segment of individuals in the labor force who are not in employment but are looking for jobs actively.

Opportunity Cost

The value of the best alternative forgone when a decision is made to pursue a particular action or resource allocation.