When a Bond Becomes More Attractive as an Asset Because

question 228

Multiple Choice

When a bond becomes more attractive as an asset because of a rise in the interest rate:

• A) the price of stock, a substitute asset, will rise.
• B) the price of stock, a substitute asset, will fall.
• C) the future price of bonds will fall.
• D) people will stop buying bonds and buy other assets.

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Definitions:

Hormones

Chemical substances released into the blood and having effects on other parts of the body.

Weight Regulation

The process of maintaining a healthy body weight through a balance of energy intake and energy expenditure.

Body Mass Index (BMI)

A numerical value derived from an individual's weight and height, used as a screening tool to categorize underweight, normal weight, overweight, or obesity.

Gender

Socially constructed roles, behaviors, expressions, and identities of girls, women, boys, men, and gender-diverse people.