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which of the following statements is true? select an answer and submit. for keyboard navigation, use the up/down arrow keys to select an answer. a a lower interest rate raises the opportunity cost of holding money. b bond prices and the interest rate are inversely related. c the total demand for money is directly related to the interest rate. d the supply of money is directly related to the interest rate.

Answer :

Interest rates and bond prices are negatively correlated. The appropriate response to the given question is option (b).

Define bonds.

According to the rules, a bond's principle and interest must be repaid at the bond's maturity date by the issuer, who owes the holder a debt. Bonds are a type of security used in finance.

An interest rate is a fee that a lender assesses to a borrower; it is calculated as a percentage of the principal, or the loaned amount. The annual percentage rate, or APR, is typically used to express the interest rate on a loan (APR).

Bond prices rise when interest rates are high and fall when they are low.

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