Question $11$

$3$ pts

Which of the following statemtn is true?

As the liquidity of corporate bonds decrease, the risk premium required on those bonds decrease as well.

A higher level of wealth causes the demand for loanable funds to increase and interest rates to fall.

An increase in interest rates increases the demand loanable funds.

The term structure of interest rates is the relationship between interest rates on bonds similar in terms except for maturity.