Podcast
Play an AI-generated podcast conversation about this lesson
Questions and Answers
Which direction do bond prices typically move when interest rates rise?
Which direction do bond prices typically move when interest rates rise?
- They fluctuate randomly
- They stay the same
- They decrease (correct)
- They increase
What is the relationship between bond prices and interest rates?
What is the relationship between bond prices and interest rates?
- They have a positive correlation
- They have no correlation
- They have a negative correlation (correct)
- Their relationship depends on other factors
Why do bond prices move in the opposite direction of interest rates?
Why do bond prices move in the opposite direction of interest rates?
- It is a result of random market fluctuations
- It is a result of government intervention
- It is a result of supply and demand dynamics (correct)
- It is a result of market speculation
Which of the following statements accurately describes the relationship between bond prices and interest rates?
Which of the following statements accurately describes the relationship between bond prices and interest rates?
Signup and view all the answers
What happens to bond prices when interest rates increase?
What happens to bond prices when interest rates increase?
Signup and view all the answers
Why do bond prices move in the opposite direction of interest rates?
Why do bond prices move in the opposite direction of interest rates?
Signup and view all the answers
Flashcards are hidden until you start studying
