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:

Trust Them

Refers to the belief in the reliability, truth, ability, or strength of someone or something.

Behaving

The action or reaction of an entity (often a living organism) in response to external or internal stimuli.

Certain Way

A specific manner or approach in which something is done or occurs.

Particular Decisions

Choices or judgments made based on specific circumstances or details.