When Interest Rates Fall, Bond Values Rise

question 279

True/False

When interest rates fall, bond values rise.

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Definitions:

Mere Exposure Effect

A psychological phenomenon where individuals develop a preference for things simply because they are familiar with them.

Proximity

The physical closeness or distance between two points or objects, often influencing the relationship or interaction between them.

Similarity

The state or fact of being alike or having common features, which can lead to the grouping of objects or ideas in cognitive processes.

Physical Attractiveness

The degree to which a person's physical features are considered aesthetically pleasing or beautiful by others.