Which of the following falls when bond prices rise?
A) Stock prices.
B) Interest rates.
C) Money demand.
D) Money supply.

Question

Quizplus · Accepted Answer

When bond prices rise, it means there is an increase in demand for bonds, which in turn causes interest rates to fall. Therefore, choice B (interest rates) is the correct answer. The other choices (A, C, and D) are not directly related to bond prices and therefore do not necessarily fall when bond prices rise.

Which of the Following Falls When Bond Prices Rise