Which of the Following Statements Is True

question 32

Multiple Choice

Which of the following statements is true?

• A) The value of a bond is inversely related to changes in investors' present required rate of return.
• B) If interest rates decrease, the value of a bond will decrease.
• C) If interest rates increase, the value of a bond will increase.
• D) If interest rates remain constant, the value of premium bonds will increase over time.

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Definitions:

Mississippi River

A major North American river, one of the longest in the world, flowing south from northern Minnesota to the Gulf of Mexico, historically significant for transport and trade.

Boundary Concessions

Agreements in which one country gives up certain territorial claims or adjusts its border as part of a negotiation with another country.

Articles of Confederation

The first constitution of the United States, in effect from 1781 to 1789, which established a national government with limited powers and was eventually replaced by the U.S. Constitution.

Independent Source of Revenue

Income that is generated independently from the main or traditional sources, often implying diversification of funding streams.