Relative Prices Describe _____

question 155

Multiple Choice

Relative prices describe _____

• A) how some prices would increase and some would decrease.
• B) how much one good costs compared to another.
• C) how prices move in unison.
• D) prices change according to the value of the dollar.
• E) complicated international transactions.

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Definitions:

Investment Portfolio

A collection of investments held by an institution or an individual.

Term To Maturity

The time remaining until a debt instrument, such as a bond or loan, is due to be repaid.

Strip Bond

A debt security that has had its periodic interest payments removed, trading only on the principal amount and offering a final payment at maturity.

Par Value

Par value is the nominal or face value of a bond, share, or coupon as stated by the issuer.