Which of These Statements About Channel Activity Is Best

question 94

Multiple Choice

Which of these statements about channel activity is best?

• A)Product is usually exchanged via the same channel as funds.
• B)A combination of multiple channels is often more effective than any single channel at serving a variety of customer needs.
• C)Information is usually exchanged via the same channel as product.
• D)The three flows usually occur in three different channels during the same transaction.

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Definitions:

Modified Duration

A measure of the sensitivity of a bond's price to changes in interest rates, reflecting the change in the bond’s price for a 1% change in yield.

Annual Interest

The percentage of interest that will be charged or earned on an investment or loan, calculated on an annual basis.

Coupon Rate

The annual interest rate paid by the issuer of a bond to the bondholder, usually expressed as a percentage of the bond's face value.

Duration

A measure of the sensitivity of the price of a bond or other debt instrument to changes in interest rates.