Which of the Following Statements Is True

question 11

Multiple Choice

Which of the following statements is true?

• A) The lower the price of a bond, relative to its face value, the lower the interest rate.
• B) The lower the price of a bond, relative to its maturity, the lower the interest rate.
• C) The higher the price of a bond, relative to its face value, the higher the interest rate.
• D) The lower the price of a bond, relative to its face value, the higher the interest rate.

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Definitions:

Vasoconstriction

The narrowing of the blood vessels resulting from contraction of the muscular wall of the vessels, which increases blood pressure.

Cardiovascular

Pertaining to the heart and blood vessels, relating to the system that circulates blood throughout the body.

Nervous System

An extensive network of neurons and supporting tissues that processes information in the body through electrical and chemical signals.

Coagulation

The action or process of a liquid, especially blood, changing to a solid or semi-solid state.