Explain the connection between the price of a financial asset and its interest rate
What will be an ideal response?
There is an inverse relationship between the price of a financial asset and its interest rate. When the price of a financial asset rises, its interest rate falls. Similarly, when the interest rate on an asset falls, the price of the asset rises.
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As a component of GDP, consumption expenditures refers to purchases by consumers of currently produced goods and services
Indicate whether the statement is true or false
Why might an amusement park switch from charging admission to the park and charging for the rides to charging for admission but not charging for the rides?
What will be an ideal response?
Good news about an economic indicator __________ the denominator of a bond's valuation formula, __________ the bond's price
A) raises; raising B) raises; lowering C) lowers; raising D) lowers; lowering
The cross elasticity of demand for complementary products must:
a. be greater than one. b. be less than one. c. be zero. d. exceed zero. e. be negative.