If You Expect Interest Rates to Go Up,buy _________________

question 52

Multiple Choice

If you expect interest rates to go up,buy _________________.

• A) Long-term bonds
• B) Short-term bonds
• C) Intermediate-term bonds
• D) Bond mutual funds

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Definitions:

Economic Individuals

Persons or entities that make decisions to maximize satisfaction or profits, based on the principles of economics.

Bit More

A small additional amount or degree.

Opportunity Cost

The trade-off of not seizing the next most favorable opportunity when faced with a decision.

Economics Club

A group or organization often found in academic institutions, where members discuss economic theories, current events, and sometimes engage in related projects or competitions.