If You Had $10,000 to Invest in Bonds and Your

question 22

Multiple Choice

If you had $10,000 to invest in bonds and your intent was to ladder the bond investments at segments of $1,000 every year,for what period of time would each bond be set?

• A)each $1,000 would purchase a 10-year bond,one per year,for the next ten years
• B)each year,$10,000 would purchase a single 1-year bond
• C)purchase one 10-year bond for $10,000
• D)each $1,000 would purchase a 1-year bond,one per year,for the next ten years

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Definitions:

Interest Rates

The cost of borrowing money or the return on investment, expressed as a percentage.

Expansionary Monetary Policy

A form of monetary policy where the central bank increases the money supply and decreases interest rates to stimulate economic growth.

Net Exports

The value of a country's total exports minus its total imports, representing the net effect of international trade on an economy’s spending balance.

Demarcation

The act of setting boundaries or distinguishing differences between things, often used to establish sectors within fields or professions.