Everything Else Held Constant,when Stock Prices Become ________ Volatile,the Demand

question 63

Multiple Choice

Everything else held constant,when stock prices become ________ volatile,the demand curve for bonds shifts to the ________ and the interest rate ________.

• A)more;right;rises
• B)more;right;falls
• C)less;left;falls
• D)less;left;does not change

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Definitions:

Deposits

Funds placed into an account at a financial institution for safekeeping or to earn interest.

Compounded Monthly

An interest calculation method where interest is added to the principal balance on a monthly basis, resulting in interest being earned on top of interest.

Monthly Payments

payments made once a month toward a loan or other financial obligation.

Loan

A sum of money that is borrowed and expected to be paid back with interest.