Which One of the Following Statements Is NOT True

question 49

Multiple Choice

Which one of the following statements is NOT true?

• A) Prices in the corporate bond market also tend to be more volatile than the markets for stocks or money market securities.
• B) Corporate bonds are more marketable than the securities that have higher daily trading volumes.
• C) The market for corporate bonds is thin.
• D) The largest investors in corporate bonds are life insurance companies and pension funds.

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Definitions:

Fixed Costs

Fixed costs are business expenses that remain constant regardless of the level of production or sales, such as rent, salaries, and insurance.

Industry Supply Curve

A graphical representation showing the total quantity of a good or service that businesses in a specific industry are willing and able to supply at various prices.

Price of An Input

The cost associated with one unit of a raw material or component used in the production of goods or services.

Perfectly Competitive Industry

A market structure characterized by many buyers and sellers, free entry and exit, and a homogeneous product.