If Interest Rates in General Were to Fall

question 20

Multiple Choice

If interest rates in general were to fall,
1. the prices of existing bonds would rise
2. the prices of existing bonds would fall
3. yields to maturity would rise
4. yields to maturity would fall

• A)1 and 3
• B)1 and 4
• C)2 and 3
• D)2 and 4

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Definitions:

Frictionally Unemployed

Individuals temporarily out of work while transitioning between jobs, often considered to be a normal aspect of a healthy economy.

Crackerjack

A brand of caramel-coated popcorn and peanuts, often associated with being a classic American snack.

Discouraged

Refers to individuals who are not actively seeking employment due to believing that there are no job opportunities available for them.

Unemployed

The condition of a person who is capable of working, actively seeking work, but unable to find any employment.