A Positive Statement

question 68

Multiple Choice

A positive statement:

• A) can actually be false.
• B) must always be true.
• C) provides an opinion with a positive outlook.
• D) is the same as a normative statement.

---

Definitions:

Semiannually

Taking place semiannually, usually once every six months.

Liquidity Risk

The risk that an entity may be unable to convert its assets to cash quickly without significant loss in value, impacting its ability to meet its short-term obligations.

Default Risk

The possibility that a borrower will be unable to make the required payments on their debt obligations.

Maturity Risk

The risk associated with the length of time until the face value of a bond or other debt instrument is repaid, affecting its price and yield.