Newton's Second Law of Motion States That

question 92

Multiple Choice

Newton's second law of motion states that:

• A) a force is always required to keep an object in motion.
• B) a body acted on by a net force will accelerate constantly while the force is applied.
• C) objects orbiting the Sun always move in elliptical orbits.
• D) a body acted on by a force will move at a constant speed while the force is applied.

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Definitions:

Inflation Premium

The portion of a nominal interest rate that represents compensation for expected future inflation.

Interest Rate Risk

The risk that changes in interest rates will adversely affect the value of an investment, particularly relevant for fixed-income securities.

Bond Prices

The amount of money at which a bond is trading, which fluctuates based on interest rates, credit quality, and other factors.

Market Interest Rates

The prevailing rates at which borrowers can obtain loans and lenders can invest their funds in the financial markets.