Question: Question 42 TRUE or FALSE. Explain your answer with NO MORE THAN THREE SENTENCES. An increase in tariffs and quotas on imports causes a country's
Question 42
TRUE or FALSE. Explain your answer with NO MORE THAN THREE SENTENCES.
An increase in tariffs and quotas on imports causes a country's currency to appreciate.
Question 43
TRUE or FALSE. Explain your answer with NO MORE THAN THREE SENTENCES.
The default risk of a bond with sinking fund is lower and hence a lower yield is given.
Question 44
TRUE or FALSE. *Each question requires explanations (Max 3 sentences)*.
All else being equal, the greater the interest rate the greater the duration is.
Question 45
TRUE or FALSE. *Each question requires explanations (Max 3 sentences)*
A negative liquidity premium indicates that investors prefer long-term bonds over short-term bonds.
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