If the Quantity of Bonds Supplied Exceeds the Quantity of Bonds

question 78

Multiple Choice

If the quantity of bonds supplied exceeds the quantity of bonds demanded, bond prices would:

• A) rise and yields would fall.
• B) fall and yields would rise.
• C) rise but yields will remain constant.
• D) fall and yields would fall.

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Definitions:

Exposure

The state of being subject to the possible effects of something, often used in the contexts of risks, health, or photography.

Return

Return refers to the profit or loss derived from an investment over a specified period, typically expressed as a percentage of the investment's initial cost.

Expected Payoff

The predicted value of a decision, investment, or gamble, factoring in all possible outcomes and their probabilities.

Probability

A measure of the likelihood that an event will occur, quantified as a number between 0 and 1.