Which of the Following Statements About the Bond Market Is

question 16

Multiple Choice

Which of the following statements about the bond market is not true?

• A) Short maturities sacrifice price appreciation opportunities.
• B) Longer maturities have greater price fluctuations.
• C) Short maturities serve to protect the investor when rates are rising.
• D) Long term interest rates are more volatile than short term interest rates.

---

Definitions:

Urethra

The tube that conducts urine from the bladder to the outside of the body and, in males, also conveys semen.

Scrotum

The pouch of skin containing the testicles in males, protecting them and regulating their temperature.

Testis

The male gonads responsible for producing sperm and hormones, such as testosterone, playing a key role in male reproductive function.

Oogenesis

The process in which ova (egg cells) are produced in the ovaries of female organisms, undergoing several stages of cell division and maturation.