All else equal, when interest rates ________, the duration of a coupon bond ________
A) rise; falls
B) rise; increases
C) falls; falls
D) falls; does not change
A
You might also like to view...
Which of the following is NOT an example of physical capital?
A) a computer B) a lawn mower C) a dump truck D) a building E) a bond
If a country has a fixed exchange rate,
A) the equilibrium exchange rate in that market does not respond to changes in supply and demand for currency. B) the exchange rate is allowed to fluctuate in response to changes in the supply and demand for currency. C) central banks have more control over real GDP in the economy. D) central banks must buy and sell their holdings of currencies to maintain a given exchange rate.
Policies designed to protect workers:
A. include minimum wage laws. B. include unionization laws. C. can lead to unemployment. D. All of these are true.
The Federal Reserve can tightly control
a. cash in the hands of the public b. cash in the hands of the public and demand deposits c. demand deposits d. funds in savings accounts and checking accounts e. borrowing by the government