Which of the Following Statements Is True

question 94

Multiple Choice

Which of the following statements is true?

• A)The more liquid the bond, the lower the interest rate.
• B)Tax-free bonds normally have a higher interest rate than other types of bonds.
• C)The price of a bond increases as it becomes more risky.
• D)The yield curve illustrates the relative risks of alternative types of bonds.

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Definitions:

Professional Service

Specialized work provided by individuals with expert knowledge or skills in a particular area.

Fiduciary Duty

A legal obligation of one party to act in the best interest of another when entrusted with certain responsibilities, typically in financial or property matters.

Financial Adviser

A professional who provides expert advice on financial planning and investment strategies to individuals or businesses.

Standard of Care

A guideline that clinicians are advised to adhere to when diagnosing and treating specific patient types, illnesses, or clinical scenarios.