Which of the Following Statements About the Relationship Between Interest

question 28

Multiple Choice

Which of the following statements about the relationship between interest rates and bond prices is true?
I.There is an inverse relationship between bond prices and interest rates.
II.There is a direct relationship between bond prices and interest rates.
III.The price of short-term bonds fluctuates more than the price of long-term bonds for a given change in interest rates (assuming that the coupon rate is the same for both) .
IV.The price of long-term bonds fluctuates more than the price of short-term bonds for a given change in interest rates (assuming that the coupon rate is the same for both) .

• A)I and IV only
• B)I and III only
• C)II and III only
• D)II and IV only

Understand the basic principles of antitrust laws and their application to business practices.

Identify legal and illegal practices under the Sherman Act, the Clayton Act, and other antitrust regulations.

Analyze the effects of monopolistic practices and market power on competition and consumers.

Distinguish between permissible and impermissible trade practices, such as tying arrangements and exclusive dealing contracts.