Which One of the Following Is the Risk That Market

question 55

Multiple Choice

Which one of the following is the risk that market rates may increase causing the price of a bond to decline?

• A)inflation risk
• B)reinvestment risk
• C)yield risk
• D)interest rate risk
• E)default risk

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Definitions:

Sensory Input

The information received by sensory receptors about the internal and external environment.

Top-down Processing

An approach to processing information where perception starts with the analysis of high-level cognitive processes.

Experiences and Expectations

The subjective perception of events that have happened in one's life and the anticipation or belief about future events respectively.

Detection

The process of discovering and identifying the presence of a stimulus, indicating how and when we perceive physical stimuli from the environment.