When a Bond Decreases in Value Because Interest Rates in the Economy

question 17

Multiple Choice

When a bond decreases in value because interest rates in the economy increase,it is an example of ________ risk.

• A)market
• B)interest rate
• C)inflation
• D)business failure
• E)current

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Definitions:

Void Title

A title to property or an asset that is invalid from the start and has no legal effect.

Merchant

an individual or business that is involved in the trading of goods, services, or commodities for profit.

Consignment Activity

Refers to the process where goods are placed in the care of another, but the ownership remains with the supplier until the goods are sold.

Trespass to Chattels

A tort in which one person unlawfully interferes with another person's lawful right of possession of personal property.