When the Interest Rate on a Bond Is Above the Equilibrium

question 104

Multiple Choice

When the interest rate on a bond is above the equilibrium interest rate,in the bond market there is excess ________ and the interest rate will ________.

• A)demand;rise
• B)demand;fall
• C)supply;fall
• D)supply;rise

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Definitions:

Work in Process

Work in process (WIP) refers to the materials and labor that are in the process of being manufactured but are not yet completed goods.

Selling Expenses

Costs incurred directly from the selling of goods or services, including advertising, sales commissions, and store displays.

Administrative Expenses

Costs related to the general operation of a business, including salaries of executive staff, office supplies, and utility expenses, but not directly tied to production or sales.

Materials Requisition

A document or electronic form used to request materials needed for production from the storeroom or inventory management.