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Alex787 [66]
3 years ago
14

Which statement is correct? a. Short-term bond’s price is more sensitive to interest rate fluctuations b. None of the others is

correct c. Short-term bond’s price is not sensitive to interest rate fluctuations d. Long-term bond’s price is more sensitive to interest rate fluctuations
Business
1 answer:
qaws [65]3 years ago
6 0

Answer: Option D

Explanation It is a common fact that bonds having longer term maturities have higher interest rate risk as compared to the bonds having short term maturities.

This, is due to the fact that market yield and price of bond have inverse relationship. Thus, the bonds having longer term periods to maturity will face more interest rate fluctuations as compared to short term bonds, that's why long term bonds price is more sensitive to interest rate changes.

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How can you maintain a balance between high-risk and low-risk investments?
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"By diversifying your investments" is the way among the choices given in the question that you can <span>maintain a balance between high-risk and low-risk investments. The correct option among all the options that are given in the question is the first option or option "A". I hope the answer helps you.</span>
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3 years ago
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Cuba is a command economy that suffered a decline in economic growth because of a cut in the aid provided by the former Soviet U
katen-ka-za [31]

Answer:

Experience an inward shift of its production possiblity curve.

Explanation:

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4 0
3 years ago
On Sept 9, Daniels Corporation earns $2,000 by performing consulting services. Their customer said that she would pay next month
anyanavicka [17]

Answer:

The answers are:

A) Consulting revenue should be listed below the debited account as it is credited.

C) Accounts payable is not involved in this transaction.

D) The Consulting revenue account should be indented, as it is credited.

E) The correct account that should be debited is the Accounts receivable account.

Explanation:

4 0
3 years ago
Identify which of the factors below are better short-range predictors and which are better long-range predictors of movements in
alina1380 [7]

Answer:

Short range predictors:

c. Nominal interest rate differential

d. Psychological effects

e. Investor expectations

f. Bandwagon effect

Long range predictors:

a. Relative monetary growth

b. Relative inflation rates

Explanation:

Nominal rate, the real rate, and inflation. long term predictors of an economic theory in which a relationship between inflation, nominal interest rate and real interest rate is identified. It defines that real interest rate is equal to inflation minus nominal interest rate.

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8 0
3 years ago
The following items are taken from the financial statements of Cullumber Company for 2022:
Doss [256]

Answer:

                                          Cullumber Company

                                          Balance Sheet

                                          As at 2022

Explanation:                      Amount in $

Current Assets

Accounts Receivable           12,500

Cash                                      13,000

Prepaid Insurance                  6,600

Supplies                                  4,600

Total Current Assets            36,700

Non-Current Assets

Equipment (225,000-36,900)  188,100

Total Assets                            <u>  </u><u>224,800</u>

Liabilities & Shareholders' Equity

Current Liabilities

Accounts Payable                10,600

Notes Payable                      65,000

Salaries Payable                      3,900

Total Current Liabilities           79,500

Equity

Common Stocks                      97,000

Retained Earnings (25,900+133,000-21,400-13,600-2,600-16,800-33,500-6,700)                                          64,300  

Dividends                                   (16,000)

 Total Equity                              145,300

Total Liabilities & shareholders' equity    <u>224,800</u>  

4 0
3 years ago
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