In a Dynamic Equilibrium

question 36

Multiple Choice

In a dynamic equilibrium:

• A) the rate of the forward reaction goes to zero
• B) the rate of the forward and reverse reactions go to zero
• C) the rates of the forward and reverse reactions become equal
• D) the reaction begins to favor the reverse direction

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Definitions:

Current Yield

A financial term describing the annual return on an investment, such as a bond, based on the investment's current market price.

Bonds

Fixed income investments representing loans made by an investor to a borrower, typically corporate or governmental.

Maturation

The process by which an investment reaches its full value or final due date.

Current Yield

The annual income return from an investment, expressed as a percentage of the current price of the security.