If There Is a Positive Relationship Between Two Variables

question 186

Multiple Choice

If there is a positive relationship between two variables,

• A) the graph of the relationship will be upward sloping.
• B) the graph of the relationship will be downward sloping.
• C) the slope of the line graphing the relationship will be negative.
• D) Both answers A and C are correct.
• E) Both answers B and C are correct.

---

Definitions:

Bond Prices

The amount of money at which a bond is trading, which fluctuates based on interest rates, credit quality, and other factors.

Market Interest Rates

The prevailing rates at which borrowers can obtain loans and lenders can invest their funds in the financial markets.

Term Structure

Term Structure relates to the relationship between interest rates or bond yields and different terms or time to maturity, graphically represented as a yield curve.

Down-Sloping

Describes a trend or line on a graph that moves from a higher to a lower point, indicative of a decrease over time.