Which One of the Following Statements Is Correct Concerning Bond

question 45

Multiple Choice

Which one of the following statements is correct concerning bond investors?

• A) Aggressive investors want to lock in high interest rates.
• B) Aggressive investors purchase bonds when they believe interest rates will rise.
• C) Conservative investors seek capital gains.
• D) Conservative investors buy bonds when interest rates are high.

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Definitions:

Adolescent Egocentrism

A characteristic of teenage thinking leading to an increased self-consciousness, where adolescents believe they are the focus of everyone else's attention.

Deductive Thinking

A logical process in which a conclusion is based on the concordance of multiple premises that are generally assumed to be true.

Inductive Thinking

A reasoning process that involves drawing general conclusions from specific observations or instances.

Egocentrism

A cognitive trait where individuals have difficulty understanding or acknowledging perspectives other than their own.