Which of the Following Will Always Increase the Internal Energy

question 30

Multiple Choice

Which of the following will always increase the internal energy of a system?

• A)The system gains energy and performs work.
• B)The system gains energy and work is performed on it.
• C)The system loses energy and performs work.
• D)The system loses energy and work is performed on it.
• E)None of the changes A-D will always increase the internal energy of a system.

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Definitions:

Interest Rate Risk Premium

The compensation investors demand for bearing interest rate risk.

Term Structure

The relationship between interest rates or bond yields and different terms or maturities.

Duration

Duration is a measure of the sensitivity of the price of a bond or other debt instrument to changes in interest rates, typically expressed in years.

Interest Rate Risk

The potential for investment values to change due to variations in the prevailing interest rates.