How Does the Risk of Long-Term Bonds Compare with Short-Term

question 37

Multiple Choice

How does the risk of long-term bonds compare with short-term bonds?

• A) Long-term bonds are generally less risky than short-term bonds and so pay higher interest.
• B) Long-term bonds are generally less risky than short-term bonds and so pay lower interest.
• C) Long-term bonds are generally more risky than short-term bonds and so pay higher interest.
• D) Long-term bonds are generally more risky than short-term bonds and so pay lower interest.

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Definitions:

Object Permanence

The understanding that objects continue to exist even when they cannot be observed (seen, heard, touched, smelled, or sensed in any way).

Conservation

The act of preserving, protecting, or restoring the natural environment and its wildlife.

Cognitive Development

The construction of thought processes, including remembering, problem solving, and decision-making, from childhood through adolescence to adulthood.

Attention Span

The length of time a person can concentrate on a task without becoming distracted.