Which of the Following Is True Regarding Fluctuations in the Prices

question 110

Multiple Choice

Which of the following is true regarding fluctuations in the prices of bonds?

• A) when interest rates go up, bond prices go up
• B) when interest rates go down, you want to purchase very short-term bonds
• C) as interest rates rise, investors demand a higher return on bonds
• D) All of the above
• E) Only A and B

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Definitions:

Closing Costs

Expenses over and above the price of the property in a real estate transaction, such as taxes, attorney's fees, and title insurance.

Escrow Agent

A neutral third party responsible for holding assets or documents until certain conditions of an agreement are met.

Lender

An individual or institution that provides funds to another with the expectation of repayment plus interest.

Title Examination

The process of reviewing public records to determine and confirm a property's legal ownership, and to identify any claims, defects, or encumbrances that may affect the title.