Question

In the bond market, the seller is considered to be A. the lender or the borrower depending upon whether interest rates are rising or falling. B. the lender or the borrower depending upon the use to which the funds are put. C. the borrower. D. the lender.

Answer 1

Answer:

The most suitable answer is,

B. the lender or the borrower depending upon the use to which the funds are put.

Explanation:

There are other permanent buyers or sellers in the bond market. The role of seller and buyer changes constantly and once a buyer can become a seller.