The Market Value of Bonds Moves in the Opposite Direction

question 126

True/False

The market value of bonds moves in the opposite direction of interest rates.

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Definitions:

Oxbow Lakes

Crescent-shaped lakes formed when a river meander is cut off from the main stream.

Cutbank

The steep or vertical bank on the outside bend of a river or stream, eroded by flowing water.

Braided Streams

Networks of river channels that are separated by small, often temporary, islands called braid bars, typically found in environments with high sediment loads.

Cutoff Meanders

These are bends in a river that have been isolated from the main flow due to the river carving a shorter path.