Which of the Following Statements Is FALSE

question 87

Multiple Choice

Which of the following statements is FALSE?

• A) The registered bond system facilitates tax collection because the government can easily keep track of all interest payments made.
• B) Asset-backed bonds and mortgage bonds are secured debt, and specific assets are pledged as collateral that bondholders have a direct claim to in the event of bankruptcy.
• C) Notes typically have longer maturities (more than ten years) than debentures.
• D) Although the word "bond" is commonly used to mean any kind of debt security, technically a corporate bond must be secured.

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Definitions:

Obligations

Legal or moral duties or responsibilities that an individual or entity is bound to perform or fulfill towards others.

Constructive Notification

For third parties who have previously dealt with the agent or who have begun to deal with the agent. This is accomplished by advertising the agency’s termination in a newspaper of general circulation in the place where the agency business regularly was carried on.

Apparent Authority

The appearance or assumption of authority based on the actions or statements of the alleged principal, leading others to believe someone has the authority to act on behalf of a company or individual.

Insanity

A mental disorder of such a severe nature that a person cannot distinguish fantasy from reality, conduct their affairs due to psychosis, or is subject to uncontrollable impulsive behavior.