An Asset's Interest Rate Risk ________ as the Duration of the Asset

question 38

Multiple Choice

An asset's interest rate risk ________ as the duration of the asset ________.

• A)increases;decreases
• B)decreases;decreases
• C)decreases;increases
• D)remains constant;increases

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Definitions:

Human Labour

The effort, physical or mental, that people contribute to the production of goods and services.

Means Of Production

The physical, non-human inputs like factories, machines, and tools used for the production of economic goods.

Human Behaviour

The range of behaviors exhibited by humans and which are influenced by culture, attitudes, emotions, values, ethics, authority, rapport, hypnosis, persuasion, coercion, and/or genetics.

Interaction

The reciprocal action or influence between two or more entities or substances, often resulting in a change.