Which of the following statements is false?
A) The issuer of a bond is a borrower.
B) The person who buys a bond is a lender.
C) Interest earned on corporate bonds is exempt from federal income taxes.
D) The coupon rate on a bond is the percentage of the face value that the bondholder receives annually until the bond matures.
C
You might also like to view...
A credible threat is:
A. possible to carry out. B. in the threatener's interest to carry out. C. legally enforceable. D. not in the threatener's interest to carry out.
Does the Fed have good control over the money supply?
a. Yes, open market operations generate exact changes in bank lending. b. Yes, reserve requirements create new loans. c. No, because of difficulties estimating the reserve ratio. d. No, because of difficulties estimating the size of the excess reserves and cash holdings by the public.
In efficient markets, ________ flows toward ________ opportunities.
A. investment capital; profit B. consumption; investment C. consumption; profit D. investment capital; consumption
Assume that the substitution effect dominates the income effect. When workers experience a positive price surprise, they
A. correctly perceive that their real wage rate has fallen, which leads them to work fewer hours. B. correctly perceive that their real wage rate has risen, which leads them to work more hours. C. incorrectly perceive that their real wage rate has fallen, which leads them to work fewer hours. D. incorrectly perceive that their real wage rate has risen, which leads them to work more hours.