Which of the Following Statements Is True

question 32

Multiple Choice

Which of the following statements is true?

• A) The value of a bond is inversely related to changes in investors' present required rate of return.
• B) If interest rates decrease, the value of a bond will decrease.
• C) If interest rates increase, the value of a bond will increase.
• D) If interest rates remain constant, the value of premium bonds will increase over time.

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Definitions:

Standardized Test Scores

Standardized test scores are numeric representations of an individual's performance on exams that have been administered in a consistent manner across all test takers, allowing for comparisons across different individuals or groups.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how much the values in a data set differ from the mean.

IQ Scores

IQ scores, or Intelligence Quotient scores, represent a person's relative cognitive abilities as compared to the general population.

Standard Deviation

A statistical measure of the dispersion or variation in a set of numbers, indicating how spread out the values are.