The Changes in Market Value for a Long-Term Treasury Bond

question 32

Multiple Choice

The changes in market value for a long-term Treasury Bond occur from

• A) reinvestment-rate risk.
• B) market risk.
• C) interest-rate risk.
• D) unique risk.

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Definitions:

Costs of Inflation

The economic consequences of inflation, including decreased currency value and increased uncertainty in investment.

Aggregate Demand

The total demand for all goods and services within an economy, including consumption, investment, government spending, and net exports.

Aggregate Supply

The total supply of goods and services produced within an economy at a given overall price level and in a given time period.

Money Supply

The total amount of money available in an economy at a particular time, including cash, deposits, and other liquid assets.