Which One of the Following Statements Is True

question 11

Multiple Choice

Which one of the following statements is true?

• A)Interest rate risk decreases as maturity increases.
• B)Long-term bonds have lower price volatility than short-term bonds.
• C)All other things being equal,short-term bonds are more risky than long-term bonds.
• D)As interest rates decline,the prices of bonds rise; and as interest rates rise,the prices of bonds decline.

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Definitions:

Pride in Membership

A feeling of satisfaction and honor associated with being part of a particular group or organization.

Clan Culture

An organizational culture characterized by a family-like environment with a focus on mentoring, nurturing, and loyalty among employees.

Measurable Goals

Objectives that can be quantified or assessed through specific criteria for success.

Financially Based

Decisions, actions, or policies grounded primarily on financial considerations, metrics, or outcomes.