Everything Else Held Constant,when Bonds Become Less Widely Traded,and as a Consequence

question 164

Multiple Choice

Everything else held constant,when bonds become less widely traded,and as a consequence the market becomes less liquid,the demand curve for bonds shifts to the ________ and the interest rate ________.

• A)right;rises
• B)right;falls
• C)left;falls
• D)left;rises

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Definitions:

Metamorphosed Rocks

Rocks that have undergone a change in mineral composition and texture due to extreme heat and pressure conditions.

Wedge-Shaped Zone

A geological area characterized by its wedge or triangular shape, often indicating tectonic activity or sediment accrual at plate boundaries.

Accretionary Prism

A geological structure formed by the accumulation of sedimentary and oceanic plate material scraped off a subducting plate, typically found at convergent plate boundaries.

Metamorphosed Rocks

Rocks that have undergone a transformation in mineralogy, texture, or chemical composition due to exposure to high pressures and temperatures.