When Interest Rates Are Falling, Most of the Return on Bonds

question 72

Multiple Choice

When interest rates are falling, most of the return on bonds will come from

• A)inflation gains.
• B)interest income.
• C)capital gains.
• D)risk premiums.

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Definitions:

Opportunity Costs

Leaving potential advantages from various options on the table by picking a particular one.

Marginal Cost

The rise in overall expenses resulting from the production of an additional unit.

Employment Discrimination

Unfair treatment of employees based on race, gender, religion, national origin, physical or mental disability, age, sexual orientation, and other characteristics.

Underemployment

Underemployment refers to a situation where workers are employed in jobs that do not fully utilize their skills or expertise, or when they work fewer hours than they would prefer.