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Which of the following best describes credit risk? Select one: a. The risk that bonds will be worth less if inflation increases. b. The risk
Which of the following best describes credit risk? Select one: a. The risk that bonds will be worth less if inflation increases. b. The risk that the coupon may decline. c. The risk that bond prices will decline when interest rates rise. d. The risk that the issuer will not be able to make timely payments of principal and/or interest. e. The risk that bond prices will decline when interest rates decline. Which of the following occur(s) with Quantitative Easing Select one: a. The Federal Reserve buys financial assets (typically debt] from banks and other financial institutions. b. The Federal Reserve prints money. c. All of these are true statements. d. The Federal Reserve stimulates the economy. e. None of these are true statements. Which of the following best describes interest rate risk? Select one: a. The risk that bonds will be worth less as inflation rises. b. The risk that the issuer will not be able to make timely payments of interest and/or principal. c. When US Treasuries have negative rates of return. d. The risk that bond prices will decline when interest rates rise. e. The risk that bond prices will decline when interest rates decline. Clear my choice
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