Which of the Following Statements Is True

question 119

Multiple Choice

Which of the following statements is true?

• A)An increase in interest rates leads to an increase in the market value of financial securities.
• B)Value of longer term securities decreases at a diminishing rate for increases in interest rates.
• C)Value of longer term securities increases at an increasing rate for any decline in interest rates.
• D)The shorter the maturity of a fixed income asset or liability, the greater the fall in market value for any given interest rate increase.
• E)The longer the maturity of a fixed income asset or liability, the greater the fall in market value for any given interest rate decrease.

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Definitions:

Prohibition

A legal restriction that prevents certain actions or behaviors, often associated with the control of drugs or alcohol.

Rules of Natural Justice

Fundamental procedural legal principles that ensure fairness in decision-making processes, including the right to a fair hearing and the prohibition of bias.

Requirements

Conditions or specifications that must be met or complied with.

Fair Hearing

A hearing conducted in accordance with the rules of procedural fairness; the person affected negatively by a decision has the right to receive proper and timely notice of all the matters affecting the case and be given a chance to put forward his side.