Which ONE of the Following Statements Is True

question 44

Multiple Choice

Which ONE of the following statements is true?

• A) Long-term bonds have lower price volatility than short-term bonds.
• B) As interest rates decline, the prices of bonds rise; and as interest rates rise, the prices of bonds decline.
• C) All other things being equal, short-term bonds are more risky than long-term bonds.
• D) Interest rate risk decreases as maturity increases.

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Definitions:

Perceived Customer Benefits

The advantages or value that consumers believe they gain from purchasing and using a product or service.

Standard Markup

The routine addition of a set percentage to the cost of goods to establish the selling price, commonly used in retail to ensure profitability.

Effective Pricing Decisions

The strategic determination of product prices to maximize profits and meet market demand.

Customer Relationship Management

A strategy for managing an organization's relationships and interactions with customers and potential customers, utilizing data analysis to improve business relationships and drive sales growth.