A "junk bond" is a bond with a
A) low yield to maturity.
B) value of zero.
C) low face value, but high coupon rate.
D) high default risk.
E) very low maturity.
D
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In the early 1900s, regulation of the use of child labor
a. was supported by trade unions. b. was first legislated by some states, and later by the federal government. c. was sometimes indirectly accomplished through compulsory school laws. d. through federal legislation was initially struck down by the Supreme Court. e. All of the above.
Money's principal function is to serve as a
a. standard for making loans. b. standard for credit reporting. c. medium of exchange. d. method for storing wealth.
Suppose that in a perfectly competitive market, firms are making economic profits. In the long run, we can expect to see:
A. some firms leave. B. the market price rise. C. market supply shift to the left. D. economic profits become zero.
Promissory notes issued by the federal government when it borrows money are known as
A. Treasury bonds. B. Treasury shares. C. Treasury stocks. D. none of the above.