One of the problems with most bonds is that their coupon payment is fixed and rising inflation weakens the purchasing power of their coupon payments. Which of the following bonds is the best option during times of high inflation?

A) FNMA Agency bonds
B) TIPS
C) High grade corporate bonds
D) High yield speculative bonds


Answer: B

Business

You might also like to view...

Name four documentation techniques

Business

Which of the following factors resulted in the federal regulation of securities in Congress?

A) corporations playing off one state against another by limiting their securities sales to states that had less stringent regulations B) corporations' ability to thwart state efforts at regulation rather easily C) securities being easily manipulated by issuers D) the collapse of the stock market in 1929

Business

Meng Co. maintains a $300 petty cash fund. On January 31, the fund is replenished. The accumulated receipts on that date represent $80 for office supplies, $160 for merchandise inventory, and $20 for miscellaneous expenses. There is a cash shortage of $8. Based on this information, the amount of cash in the fund before the replenishment is:

A. $32. B. $40. C. $300. D. $48. E. $260.

Business

What is the primary distinction between a joint venture and a strategic alliance in international marketing?

A. Strategic alliances are only formed between companies from well-developed countries whereas joint ventures are between companies from economically-diverse countries. B. A joint venture involves only two companies whereas a strategic alliance is formed between three or more companies. C. A joint venture is defined in scope, while a strategic alliance is typically represented by an agreement to work together. D. A joint venture is formed between companies with dissimilar product offerings while a strategic alliance is formed between companies with similar product offerings. E. A joint venture is simply a financial investment in a foreign firm while a strategic alliance involves more than just financial support.

Business