Which of the Following Statements Is True

question 112

Multiple Choice

Which of the following statements is true?

• A) Short-term bonds have greater interest rate risk than do long-term bonds.
• B) Long-term bonds have greater interest rate risk than do short-term bonds.
• C) All bonds have equal interest rate risk.
• D) Interest rate risk is highest during periods of high interest rates.

---

Definitions:

Units

Basic quantities or measurements used to express variables, such as meters for length or kilograms for weight.

Price Ceiling

A government-imposed limit on the price charged for a product, aimed at keeping prices from rising too high.

Quantity Demanded

The amount of a good or service consumers are willing and able to purchase at a given price.

Quantity Supplied

Quantity Supplied refers to the amount of a certain good producers are willing to supply when receiving a certain price, directly influenced by the price level, among other factors.