Agencies exist which rate bonds based on characteristics of the borrower. Such bond rating agencies are an example of a financial market response designed to:
A. transfer risk from the buyer to the rating agency.
B. decrease the real return to bondholders.
C. provide a lower cost solution to the high cost of information.
D. increase information asymmetry.
Answer: C
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The Congressional Budget Office estimates that the ratio of publicly held debt to GDP will ________ by 2050 if no entitlement reforms are enacted
A) remain close to the current high level of 73% B) fall to only about 55% C) more than triple to about 250% D) rise to about 130%
What are the different types of price discrimination?
What will be an ideal response?
Which of the following would decrease the unemployment rate?
A) government aid to retrain unemployed workers B) an increase in the efficiency wage C) an increase in the minimum wage D) an increase in labor union membership
The human skills theory is similar to the factor abundance theory of explaining the source of comparative advantage, except that the former concentrates only on different aspects of labor
a. True b. False Indicate whether the statement is true or false