What Effect Would a 100 Basis Point Drop in Yield

question 101

Multiple Choice

What effect would a 100 basis point drop in yield have on bond prices?

• A)It would have a larger impact on bond prices when yields are high.
• B)It would have a larger impact on bond prices when yields are low.
• C)It would have the same impact on bond prices regardless of whether yields are high or low.
• D)It would cause bond prices to fall in general.

---

Definitions:

Episodic Buffer

The system that binds visual and verbal information in the long-term store and retrieves information from the long-term store.

Central Executive

The part of the brain's working memory system responsible for overseeing and regulating the flow of information from and to its various components.

Episodic Buffer

A component of the working memory system that integrates information from different sources into a single, multi-dimensional representation.

Visuospatial Sketchpad

A component of working memory responsible for holding and manipulating visual and spatial information.