8-59 Which of the Following Statements Is True

question 21

Multiple Choice

8-59 Which of the following statements is true?

• A)An increase in interest rates leads to an increase in the market value of financial securities.
• B)Value of longer term securities decreases at a diminishing rate for increases in interest rates.
• C)Value of longer term securities increases at an increasing rate for any decline in interest rates.
• D)The shorter the maturity of a fixed income asset or liability,the greater the fall in market value for any given interest rate increase.
• E)The longer the maturity of a fixed income asset or liability,the greater the fall in market value for any given interest rate decrease.

---

Definitions:

Jewelry Store

A retail business establishment specialized in selling jewelry, including rings, necklaces, earrings, and bracelets.

Insurable Interest

A requirement in insurance policies that the policyholder must stand to suffer a financial loss from the insured event, giving them a legitimate interest in seeking coverage.

Buyers

Individuals or entities that purchase goods or services.

Sellers

Individuals or entities that offer goods or services for sale to buyers.