Though Treasury Bonds May Have Little Default Risk,what Type of Risk

question 46

Multiple Choice

Though Treasury bonds may have little default risk,what type of risk exists when current interest rates are low?

• A) price risk
• B) refinancing risk
• C) interest-rate risk
• D) present value risk

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Definitions:

U.S. Dollar

The official currency of the United States, used as a standard monetary unit for many international transactions.

Foreign Currencies

Currencies used in international trade and investment, outside of the domestic or home country's currency.

Post Hoc

A logical fallacy where one assumes that because one event followed another, the first event caused the second.

Unemployment Rate

The percentage of the labor force that is jobless and actively seeking employment, a key indicator of economic health.