Which of the Following Statements Is TRUE

question 58

Multiple Choice

Which of the following statements is TRUE?

• A) The more liquid the bond, the lower the yield.
• B) Tax-free bonds normally have a higher interest rate than other types of bonds.
• C) The price of a bond increases as it becomes more risky.
• D) The yield curve illustrates the relative default risks of alternative types of bonds.

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Definitions:

Affect

The experience of feeling or emotion, which is an essential part of the process of an individual's interaction with stimuli.

Cognitive Dissonance

The mental discomfort experienced by a person who holds two or more contradictory beliefs, ideas, or values at the same time.

Blood Pressure

A measure of the force exerted by circulating blood on the walls of blood vessels, critical for diagnosing and monitoring cardiovascular health.

Cognitive Dissonance

A psychological phenomenon where an individual experiences discomfort from holding two or more contradictory beliefs, ideas, or values at the same time.