Multiple Choice
(I) If a corporate bond becomes less liquid,the demand for the bond will fall,causing the interest rate to rise.
(II) If a corporate bond becomes less liquid,the demand for Treasury bonds does not change.
A) (I) is true, (II) false.
B) (I) is false, (II) true.
C) Both are true.
D) Both are false.
Correct Answer:
Verified
Correct Answer:
Verified
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