(I)If a Corporate Bond Becomes Less Liquid,the Demand for the Bond

question 66

Multiple Choice

(I) If a corporate bond becomes less liquid,the demand for the bond will fall,causing the interest rate to rise.
(II) If a corporate bond becomes less liquid,the demand for Treasury bonds does not change.

• A) (I) is true, (II) false.
• B) (I) is false, (II) true.
• C) Both are true.
• D) Both are false.

---

Definitions:

Members

Individuals or entities that belong to a group, organization, or set.

Stratified Random Sample

A stratified random sample is a sampling method that divides the population into smaller groups, or strata, and randomly selects samples from each stratum.

Simple Random Sample

A subset of a statistical population in which each member has an equal probability of being chosen, ensuring a representative sample.

Videocassette Recorders

A device used for recording and playing back video content on magnetic tape cassettes.