Which of the Following Is True with Regard to Bonds

question 62

Multiple Choice

Which of the following is true with regard to bonds?

• A) As the price of a bond falls, the interest rates rises.
• B) As the price of a bond rises, the interest rates rises.
• C) As the price of a bond falls, the interest rates remains unchanged.
• D) As the price of a bond falls, the interest rates falls.

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Definitions:

Forced Compliance

is a psychological phenomenon where an individual is compelled to act in contradiction to their beliefs or attitudes, often leading to a change in those beliefs or attitudes due to cognitive dissonance.

Cognitive Dissonance

A psychological conflict resulting from incongruous beliefs and attitudes held simultaneously.

Central Route

A concept from the Elaboration Likelihood Model of persuasion, referring to the path of cognitive processing that involves detailed scrutiny of persuasive information.

Attentive Listener

Someone who actively listens and engages in what is being said, showing interest and understanding.