When the Economy Enters into a Boom,normally the Demand for Bonds

question 92

Multiple Choice

When the economy enters into a boom,normally the demand for bonds ________, the supply of bonds ________,and the interest rate ________.

• A) increases; increases; rises
• B) decreases; decreases; falls
• C) increases; decreases; rises
• D) decreases; increases; rises

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Definitions:

Economic Life

The estimated period over which an asset is expected to be economically useful to the owner.

Cost of Capital

The rate of return a company must earn on its investment projects to maintain its market value and attract funds.

Annual Rate of Return

The percentage of profit or loss on an investment over one year.

Accounting Data

Information and records concerning the financial transactions and status of a business, including ledgers, journals, financial statements, and more.