An Equal Decrease in All Bond Interest Rates

question 105

Multiple Choice

An equal decrease in all bond interest rates

• A)increases the price of a five-year bond more than the price of a ten-year bond.
• B)increases the price of a ten-year bond more than the price of a five-year bond.
• C)decreases the price of a five-year bond more than the price of a ten-year bond.
• D)decreases the price of a ten-year bond more than the price of a five-year bond.

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Definitions:

Interfering

The act of impeding or meddling in the affairs or processes of others, potentially causing disruption or hindrance.

Choice Decisions

The cognitive process of selecting among multiple options or actions in various contexts.

Government Intervention

The active involvement of a government in the economic, social, or political matters of a country, typically to correct market failures or promote social welfare.

Black Market

An illegal trade of goods or services where transactions occur beyond governmental control or are not sanctioned by law.