As market rates of interest rise,investors move their funds into bonds,thus increasing their price and lowering their yield.

Name: As market rates of interest rise,investors move their funds into bonds,thus increasing their price and lowering their yield.
Brand: Quizplus
Rating: 4.8 (54 reviews)

Question

Quizplus · Accepted Answer

When market rates of interest rise, investors typically move their funds out of bonds and into other investments with higher rates of return. This reduces demand for bonds, leading to a drop in price and an increase in yield.

As Market Rates of Interest Rise,investors Move Their Funds into Bonds,thus