Debt instruments subject their owners to risk from
1) loss of purchasing power
2) higher credit ratings
3) default
A)1 and 2
B)1 and 3
C)2 and 3
D)1, 2, and 3

Question

Debt instruments subject their owners to risk from​
1) loss of purchasing power
2) higher credit ratings
3) default
A)​1 and 2
B)​1 and 3
C)​2 and 3
D)​1, 2, and 3

Quizplus · Accepted Answer

Debt instruments subject their owners to risk from loss of purchasing power and default, but not from higher credit ratings. Therefore, option A is incorrect. Option C is incorrect because it only identifies risks from credit ratings and default, but not loss of purchasing power. Option D is incorrect because it implies that debt instruments subject their owners to risks from all three options, but this is not true for higher credit ratings. Hence, the correct answer is B - 1 and 3.

Debt Instruments Subject Their Owners to Risk From​

Debt Instruments Subject Their Owners to Risk From