Default risk:
A) is the risk the bond issuer will be unable to pay the interest and principal on the obligation
B) means a high percentage yield (11% or higher)
C) with a 11.3% yield on a bond means that there is little risk involved in paying back the principal and interest
D) means that the interest rate can be low because the risk is high
Correct Answer:
Verified
Q10: Other things being equal,the greater the rate
Q11: Market segmentation:
A) means there are two (or
Q12: The Equation of Exchange (Irving Fisher)is:
A) MV
Q13: The price-anticipation effect on interest rates:
A) reflects
Q14: The income effect comes into play when:
A)
Q16: Velocity of circulation refers to:
A) how fast
Q17: In the equation of exchange:
A) M =
Q18: Economists agree:
A) inflation stops growing after it
Q19: Liquidity,income,and price-anticipation effects:
A) are related to the
Q20: The line of causation: of money> inflation>
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