Which One of the Following Statements Is Correct Concerning Bond

question 45

Multiple Choice

Which one of the following statements is correct concerning bond investors?

• A) Aggressive investors want to lock in high interest rates.
• B) Aggressive investors purchase bonds when they believe interest rates will rise.
• C) Conservative investors seek capital gains.
• D) Conservative investors buy bonds when interest rates are high.

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Definitions:

Cournot Model

Oligopoly model in which firms produce a homogeneous good, each firm treats the output of its competitors as fixed, and all firms decide simultaneously how much to produce.

Output

Represents the quantity of goods or services produced within a given period by a firm, industry, or economy.

Competitor

An entity operating in the same industry or market as another, offering similar products or services.

Profit Maximizing

This is the process or strategy businesses employ to achieve the highest possible profit, where marginal revenues equal marginal costs.