Bond Prices and Interest Rates

question 198

Multiple Choice

Bond prices and interest rates

• A)are interrelated.
• B)have no relationship to one another.
• C)rise or fall in tandem.
• D)None of these choices.

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Definitions:

Lock-up Clutch

A mechanism in automatic transmissions that locks the engine directly to the transmission at cruising speed to improve fuel efficiency and performance.

Coupling Ratio

in engineering, refers to the relationship between the input and output of a system, such as in transformers or gear ratios.

Fluid Couplings

A hydrodynamic device used to transmit rotating mechanical power; it has been used in automobile transmissions as a replacement for a mechanical clutch.

Torque Converter

A fluid coupling device that is used to transfer rotating power from a prime mover, like an engine, to a rotating driven load.