What is the main advantage of holding corporate bonds, when compared to holding stocks?
a. Bondholders carry voting privileges.
b. Bondholders have the option of converting bonds to stock.
c. Bondholders have first claim on a corporation's profit.
d. Bondholders get a higher return, but with higher risk.
e. Bondholders are corporate owners so have more say.
C
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A tax credit given to first-time home buyers would result in a _____________ shift in the ______________ curve for housing, which would lead to the unintended result of a(n) _____________ in the price of housing.
A. leftward; supply; increase B. leftward; demand; decrease C. rightward; supply; decrease D. rightward; demand; increase E. none of the above
Among the subjects covered in macroeconomics are the
A) unemployment rate for the entire labor force, and the causes of the increase in the overall price level. B) causes of the increase in the price of oil relative to other commodities. C) effects of low wages on the laborers' moral. D) causes of the change in the individual firms' profits.
Suppose the money supply grew at an average annual rate of 8%, velocity was constant, the nominal interest rate averaged 9%, and output grew at an average annual rate of 3%. According to the quantity theory,
a. inflation averaged 8% per year and the real interest rate was 9%. b. inflation averaged 11% per year and the real interest rate was 17%. c. inflation averaged 5% per year and the real interest rate was 4%. d. inflation averaged 1% per year and the real interest rate was 6%.
Both a perfectly competitive firm and a monopolist find that:
A. price and marginal revenue are the same. B. they can sell as many units of output as they want at the market price. C. price is less than marginal revenue. D. it is best to expand production until the benefit and the cost of the last unit produced are equal.