Which One of the Following Variables Has the Greatest Effect

question 54

Multiple Choice

Which one of the following variables has the greatest effect on bond prices?

• A) economic growth
• B) interest rates
• C) inflation
• D) stock market returns

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Definitions:

Common-Size Statement

A financial statement in which each line item is expressed as a percentage of a significant total, facilitating comparison.

Comprehensive Income

The change in equity of a business enterprise during a period from transactions and other events from non-owner sources. It includes all forms of earnings and gains or losses.

Accounts Payable Turnover

A financial metric that measures the rate at which a company pays off its suppliers.

Days' Sales

A financial metric that measures the average time it takes for a company to turn its inventory into sales.