Which One of the Following Statements Is Not True

question 78

Multiple Choice

Which one of the following statements is not true?

• A)As interest rates increase,bond prices increase.
• B)Interest rate changes and bond prices are inversely related.
• C)Interest rate risk is the risk that bond prices will change as interest rates change.
• D)Long-term bonds are more price volatile than short-term bonds of similar risk.

---

Definitions:

Viable Alternative

A feasible or practical option that serves as a substitute or replacement for something else.

Conventional Viewpoint

A perspective or opinion that is widely accepted or regarded as standard, traditional, or typical within a given society or community.

Overwhelming

A feeling or situation so intense that it's hard to manage or endure.

Persistent and Unswerving Action

Continuous and unwavering effort towards achieving a specific goal, without being diverted by challenges or setbacks.