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:

Economic Success

The achievement of desired financial outcomes in growth, employment, and stable prices within an economy.

Entrepreneurs

Individuals who create, organize, and manage a business venture, taking on financial risks in the hope of profit.

American Entrepreneur

An American entrepreneur is an individual in the United States who starts and manages a business venture, taking on financial risks in the hope of profit.

Economic Success

The achievement of desired financial outcomes and growth in an economy, often measured by indicators such as GDP growth, employment rates, and living standards.