As a result of low interest rates on CDs and the perceived riskiness of alternative investments following the financial crisis of 2007-2009, the bond market was affected in all of the following ways EXCEPT:
A)higher demand for bonds
B)higher real interest rates
C)lower nominal interest rates
D)higher price of bonds

Question

Quizplus · Accepted Answer

Low interest rates on CDs and perceived riskiness of alternative investments following the financial crisis of 2007-2009 led to higher demand for bonds, lower nominal interest rates, and higher price of bonds. However, higher real interest rates were not a result of these factors but rather a reflection of economic conditions and inflation expectations.

As a Result of Low Interest Rates on CDs and the Perceived