Which of the Following Statements Is TRUE

question 210

Multiple Choice

Which of the following statements is TRUE?
I. Competitive markets channel the self-interest of business leaders toward social prosperity.
II. Political structures often channel self-interest toward social destruction.
III. Many monopolies are government-created.

• A) I and III
• B) I and II
• C) II and III
• D) I, II, and III

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Definitions:

Interest Rates

The cost of borrowing money or the return on investment for savings, usually expressed as a percentage of the principal amount on an annual basis.

Bond Prices

The market price at which a bond is traded, influenced by interest rates, credit ratings, and the bond's term to maturity.

Interest Rate Risk

Interest rate risk refers to the potential for investment losses that result from a change in interest rates, affecting the value of interest-bearing assets like bonds.