If Market Interest Rates Move Upwards After an Investor Buys

question 38

Multiple Choice

If market interest rates move upwards after an investor buys a government bond,the investor may:

• A) sell the bond back to Treasury.
• B) sell the bond in the secondary markets for a capital loss.
• C) sell the bond in the secondary markets for a capital gain.
• D) hold the bond until the market rates return to their original level and then have a capital gain.

Discuss the rational decision-making model and how it can be violated or adhered to.

Understand the role of emotion and mood in promoting certain types of decision-making strategies.

Comprehend the mechanisms and approaches to prevent escalation of commitment to failing projects.

Recognize the factors that contribute to poor decision making, including stress and group dynamics.

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Definitions:

Realistic Job Preview

A tactic used by employers to give prospective employees a true view of what a job involves, including both positive and negative aspects.

Desirable

Qualities or features that make something wanted or sought after due to being attractive, beneficial, or suitable.

Career Development Program

A structured series of activities and processes designed to help individuals identify their interests, values, and skills to plan and pursue a career path.

HR Functions

The various roles and responsibilities of the human resources department, including recruitment, training, employee relations, and performance management.